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(8% interest) k $170,000 60,000 24,000 $153,000 60,000 24,000 $136,000 60,000 24,000

(8% interest) k $170,000 60,000 24,000 $153,000 60,000 24,000 $136,000 60,000 24,000

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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The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: Total assets Notes payable (8% interest) Common stock Preferred 4% stock, $100 par (no change during year) Retained earnings December 31 December 31 20Y7 20Y6 $170,000 60,000 24,000 Return on total assets 12,000 69,110 $153,000 60,000 24,000 Return on stockholders' equity Return on common stockholders' equity 12,000 49,750 The 20Y7 net income was $19,840, and the 20Y6 net income was $14,230. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. When required, round your answers to one decimal place. 20Y7 % December 31 20Y5 $136,000 60,000 24,000 % 12,000 36,000 % 20Y6 % % %
Transcribed Image Text:The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: Total assets Notes payable (8% interest) Common stock Preferred 4% stock, $100 par (no change during year) Retained earnings December 31 December 31 20Y7 20Y6 $170,000 60,000 24,000 Return on total assets 12,000 69,110 $153,000 60,000 24,000 Return on stockholders' equity Return on common stockholders' equity 12,000 49,750 The 20Y7 net income was $19,840, and the 20Y6 net income was $14,230. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. When required, round your answers to one decimal place. 20Y7 % December 31 20Y5 $136,000 60,000 24,000 % 12,000 36,000 % 20Y6 % % %
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