8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 37CE: Stockholder Profitability Ratios The following information pertains to Montague Corporation...
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![8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Times interest earned
11. Asset turnover
12. Return on total assets
13. Return on stockholders' equity
14. Return on common stockholders'
equity
15. Earnings per share on common stock
16. Price-earnings ratio
17. Dividends per share of common stock
18. Dividend yield](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F393698ae-c0ec-4ce3-bb77-8c7d03b4d9b5%2F1a568968-7c47-4411-b941-6141e1d3178c%2Fjl1vrm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Times interest earned
11. Asset turnover
12. Return on total assets
13. Return on stockholders' equity
14. Return on common stockholders'
equity
15. Earnings per share on common stock
16. Price-earnings ratio
17. Dividends per share of common stock
18. Dividend yield
![Stargel Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Sales ..
Cost of goods sold..
Gross profit ..
Selling expenses
Administrative expenses.
Total operating expenses
Income from operations.
Other income.
$10,000,000
$9,400,000
4,950,000
$4450,000
$1,880,000
5,350,000
$ 4,650,000
$ 2,000,000
1,500,000
$ 3,500,000
$ 1,150,000
150,000
$ 1,300,000
170,000
$ 1,130,000
1,410,000
$3,290,000
$1,160,000
140,000
$1,300,000
Other expense (interest)...
Income before income tax
Income tax expense.
Net income....
150,000
$1,150,000
225,000
$ 925,000
230,000
$ 900,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Y2
20Υ1
Assets
Current assets:
Cash
$ 500,000
$ 400,000
Marketable securities...
1,010,000
1,000,000
Accounts receivable (net).
740,000
510,000
Inventories.
1,190,000
950,000
Prepaid expenses
Total current assets..
Long-term investments..
Property, plant, and equipment (net)
Total assets..
250,000
229.000
$3,089,000
$3,690,000
2,350,000
2,300,000
3,740,000
$9,780,000
3.366,000
$8,755,000
Liabilities
Current liabilities...
Long-term liabilities:
Mortgage note payable, 10%...
Bonds payable, 10 %....
Total long-term liabilities .
Total liabilities.
$ 900,000
$ 880,000
$ 200,000
1,500,000
$1,700,000
$2.600,000
1,500,000
$1,500,000
$2.380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par.
Common stock, $5 par....
Retained earnings.....
Total stockholders'equity.....
Total liabilities and stockholders' equity..
$ 500,000
$ 500,000
500,000
500,000
6,180,000
$7,180,000
$9.780,000
5,375,000
$6,375,000
$8.755,000
Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Retained earnings, January 1...
Net income..
Total
Dividends:
On preferred stock
On common stock..
Total dividends....
Retained earnings, December 31
$4,545,000
925,000
$5,470,000
$5,375,000
900,000
$6,275,000
$ 45,000
$ 45,000
50,000
$ 95,000
$6,180,000
50,000
$95,000
$5,375,000
Instructions
Determine the following measures for 20Y2, rounding
to one decimal place including percentages, except
for per-share amounts:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F393698ae-c0ec-4ce3-bb77-8c7d03b4d9b5%2F1a568968-7c47-4411-b941-6141e1d3178c%2F33l0bug_processed.png&w=3840&q=75)
Transcribed Image Text:Stargel Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Sales ..
Cost of goods sold..
Gross profit ..
Selling expenses
Administrative expenses.
Total operating expenses
Income from operations.
Other income.
$10,000,000
$9,400,000
4,950,000
$4450,000
$1,880,000
5,350,000
$ 4,650,000
$ 2,000,000
1,500,000
$ 3,500,000
$ 1,150,000
150,000
$ 1,300,000
170,000
$ 1,130,000
1,410,000
$3,290,000
$1,160,000
140,000
$1,300,000
Other expense (interest)...
Income before income tax
Income tax expense.
Net income....
150,000
$1,150,000
225,000
$ 925,000
230,000
$ 900,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Y2
20Υ1
Assets
Current assets:
Cash
$ 500,000
$ 400,000
Marketable securities...
1,010,000
1,000,000
Accounts receivable (net).
740,000
510,000
Inventories.
1,190,000
950,000
Prepaid expenses
Total current assets..
Long-term investments..
Property, plant, and equipment (net)
Total assets..
250,000
229.000
$3,089,000
$3,690,000
2,350,000
2,300,000
3,740,000
$9,780,000
3.366,000
$8,755,000
Liabilities
Current liabilities...
Long-term liabilities:
Mortgage note payable, 10%...
Bonds payable, 10 %....
Total long-term liabilities .
Total liabilities.
$ 900,000
$ 880,000
$ 200,000
1,500,000
$1,700,000
$2.600,000
1,500,000
$1,500,000
$2.380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par.
Common stock, $5 par....
Retained earnings.....
Total stockholders'equity.....
Total liabilities and stockholders' equity..
$ 500,000
$ 500,000
500,000
500,000
6,180,000
$7,180,000
$9.780,000
5,375,000
$6,375,000
$8.755,000
Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Retained earnings, January 1...
Net income..
Total
Dividends:
On preferred stock
On common stock..
Total dividends....
Retained earnings, December 31
$4,545,000
925,000
$5,470,000
$5,375,000
900,000
$6,275,000
$ 45,000
$ 45,000
50,000
$ 95,000
$6,180,000
50,000
$95,000
$5,375,000
Instructions
Determine the following measures for 20Y2, rounding
to one decimal place including percentages, except
for per-share amounts:
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