Profitability Ratios. Refer to the condensed income statement for… Profitability Ratios.

Profitability Ratios. Refer to the condensed income statement for… Profitability Ratios. Refer to the condensed income statement for CarMax, Inc., in Exercise 20 and to the company’s balance sheet shown as follows.ASSETS  CURRENT ASSETS:20192018Cash and cash equivalents $                  58,211 $                  46,938Restricted cash from collections on auto loans receivable481,043440,669Accounts receivable, net191,090139,850Inventory2,846,4162,519,455Other current assets86,92767,101TOTAL CURRENT ASSETS3,663,6873,214,013Auto loans receivable, net13,551,71112,428,487Property and equipment, net3,069,1022,828,058Deferred income taxes89,84261,346Operating lease assets449,094                            -Other assets258,746185,963TOTAL ASSETS $            21,082,182 $            18,717,867   CURRENT LIABILITIES:  Accounts payable $                737,144 $                593,171Accrued expenses and other current liabilities331,738318,204Accrued income taxes1,3893,784Current portion of operating lease liabilities30,980                            -Short-term debt401,129Current portion of long-term debt9,25110,177Current portion of non-recourse notes payable424,165385,044TOTAL CURRENT LIABILITIES1,534,7071,311,509Long-term debt, excluding current portion1,778,6721,649,244Non-recourse notes payable, excluding current portion13,165,38412,127,290Operating lease liabilities, excluding current portion440,671                            -Other liabilities393,873272,796TOTAL LIABILITIES17,313,30715,360,839Common Stock81,54183,739Capital in excess of par value1,348,9881,237,153Accumulated other comprehensive loss(150,071)(68,010)Retained earnings2,488,4172,104,146TOTAL SHAREHOLDERS’ EQUITY3,768,8753,357,028TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $            21,082,182 $            18,717,867Required:Compute the following profitability ratios for 2019, and provide a brief explanation after each ratio (round percentage computations to one decimal place and earnings per share to two decimal places):Gross margin ratioProfit margin ratioReturn on assetsReturn on common shareholders’ equityEarnings per share (assume weighted average shares outstanding totaled 223,449,000 shares) Accounting Business Managerial Accounting ACCT MISC Share QuestionEmailCopy link