Profitability Measures
Shown Below Is a Recent Income Statement for B-D

Profitability measures
Shown below is a recent income statement for B-D Electric.
Net Income $970,000
Assume that comparative balance sheets for B-D Electric indicate average total assets for the year of $2,500,000, and average total equity of $2,050,000. Compute the following:
$\begin{array}{c}\text { B-D ELECTRIC}\\\text { Income Statement}\\\text { For the Year Ended January 31,2010}\\\begin{array}{|l|c|c|}\hline \text { Net sales } & & \$ 7,500,000 \\\hline \text { Less: Cost of goods sold } & & 4.100,000 \\\hline \text { Gross profit } & & \$ 3,400,000 \\\hline \text { Less: Operating expenses } & & 1,975,000 \\\hline \text { Operating income } & & \$ 1,425,000 \\\hline \text { Less: Non-operating expenses: } & & \\\hline \text { Interest expense } & \$ 175,000 & \\\hline \text { Income taxes expense } & 280,000 & 455,000 \\\hline\end{array}\end{array}$ $$\begin{array} { | l | l | l | } \hline \text { (a) } & \text { Gross profit rate. } & \% \_\_\_\\\hline \text { (b) } & \text { Net income as a percentage of net sales. } & \% \_\_\_\\\hline \text { (c) } & \text { Return on assets. } & \%\_\_\_ \\\hline \text { (d) } & \text { Return on equity. } & \\\hline\end{array}$$