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4. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When required, round your answers to one decimal place 2017 26 " 2016 Return on total assets Return on stockholders' equity Return on common stockholders' equity I. The profitability ratios indicate that the company's profitability has improved. must be positive leverage from the use of debt N Since the return on assets is less than the return on stockholders' equity in both years, there

4. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When required, round your answers to one decimal place 2017 26 " 2016 Return on total assets Return on stockholders' equity Return on common stockholders' equity I. The profitability ratios indicate that the company's profitability has improved. must be positive leverage from the use of debt N Since the return on assets is less than the return on stockholders' equity in both years, there

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Profitability ratios The following selected data were taken from the financial statements Total assets Notes payable (Pinterest) Common stock Preferred 5% stock, $100 par (no change during year) December 31 December 31 December 31 2017 2016 2015 $273,000 $246,000 90,000 90,000 36,000 36,000 18,000 18,000 18,000 taned earning 101,295 54,000 The 2017 net income was $32.520, and the 2016 net income was $16,575, No dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 and 2017. of Vidatull Inc. for December 31, 2017, 2016, and 2015: 2017 4. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When required, round your answers to one decimal place. $219,000 90,000 36,000 % % Return on total assets Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that the company's profitability has improved must be positive ✔leverage from the use of debt. 2016 ✔Since the return on assets is less than ✓the return on stockholders' equity in both years, there
Transcribed Image Text:Profitability ratios The following selected data were taken from the financial statements Total assets Notes payable (Pinterest) Common stock Preferred 5% stock, $100 par (no change during year) December 31 December 31 December 31 2017 2016 2015 $273,000 $246,000 90,000 90,000 36,000 36,000 18,000 18,000 18,000 taned earning 101,295 54,000 The 2017 net income was $32.520, and the 2016 net income was $16,575, No dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 and 2017. of Vidatull Inc. for December 31, 2017, 2016, and 2015: 2017 4. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When required, round your answers to one decimal place. $219,000 90,000 36,000 % % Return on total assets Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that the company's profitability has improved must be positive ✔leverage from the use of debt. 2016 ✔Since the return on assets is less than ✓the return on stockholders' equity in both years, there
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