Culinary Delights Company

Use the financial statements for Culinary Delights Company to answer the questions that follow.
Consolidated Statement of Earnings and Retained Earning

-Refer to the financial statements for Culinary Delights Company.

Required
(A)Calculate Culinary Delights' return on sales ratio for 2018 and 2017.Assume that the income tax rate is 30%.What information is provided by this ratio? (
B)Calculate the return on common stockholders' equity ratio for 2018 and 2017.Stockholders' equity at December 31,2016,was $897,431 (in thousands).Why is the denominator an average instead of a single amount?

Question

Culinary Delights Company

Use the financial statements for Culinary Delights Company to answer the questions that follow.
Consolidated Statement of Earnings and Retained Earning

-Refer to the financial statements for Culinary Delights Company.
 
Required
(A)Calculate Culinary Delights' return on sales ratio for 2018 and 2017.Assume that the income tax rate is 30%.What information is provided by this ratio? (
B)Calculate the return on common stockholders' equity ratio for 2018 and 2017.Stockholders' equity at December 31,2016,was $897,431 (in thousands).Why is the denominator an average instead of a single amount?

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The Answer of Culinary Delights Company

Use the financial statements for Culinary Delights Company to answer the questions that follow.
Consolidated Statement of Earnings and Retained Earning

-Refer to the financial statements for Culinary Delights Company.
 
Required
(A)Calculate Culinary Delights' return on sales ratio for 2018 and 2017.Assume that the income tax rate is 30%.What information is provided by this ratio? (
B)Calculate the return on common stockholders' equity ratio for 2018 and 2017.Stockholders' equity at December 31,2016,was $897,431 (in thousands).Why is the denominator an average instead of a single amount?

Culinary Delights Company Use the Financial Statements for Culinary Delights Company to Answer