The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:December 31Total assetsNotes payable (8% interest)Common stockPreferred 5% stock, $100 par(no change during year)Retained earnings20Y7$209,00070,00028,00014,000Return on total assetsdebt.20Y672,140The 20Y7 net income was $20,790, and the 20Y6 net income was $10,750. No dividends on common stock were declared between 20Y5and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.20Y7$188,00070,00028,00014,0000.2552,050a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years20Y6 and 20Y7. Round percentages to one decimal place.Return on stockholders' equityReturn on common stockholders' equityb. The profitability ratios indicate that the company's profitability hasX %%20Y5%$167,00070,00028,00014,00042,000the return on stockholders' equity in both years, there must be20Y6%%%. Since the rate of return on total assets isleverage from the use of

Ratio analysis :— Relationship Between two no. Of the same kind. The ratio analysis is one the most…

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. Round percentages to one decimal place. Return on total assets 20Y7 debt. 0.25 X % Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that the company's profitability has % % 20Y6 the return on stockholders' equity in both years, there must be % % % . Since the rate of return on total assets is leverage from the use of

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. Round percentages to one decimal place. Return on total assets 20Y7 debt. 0.25 X % Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that the company's profitability has % % 20Y6 the return on stockholders' equity in both years, there must be % % % . Since the rate of return on total assets is leverage from the use of

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The financial statements of Kingbird Company appear below: KINGBIRD COMPANY Comparative Balance…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: From the following ratios and given information: 1.Fixed Assets: 40,00,000 2. Closing Stock:…

A: Fixed assets are those assets which are being held by the business for longer period of time. It…

Q: The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall…

A: Return on stockholders’ equity = Net Income / Average stockholders’ equity where, Average…

Q: Calculate Return on Equity from the following: Net income $519.4, Preferred dividends 0.0, Average…

A: RETURN ON EQUITYReturn on Equity is the Ratio between Net Income for Common Stockholder Equity &…

Q: A firm's earnings per share is $4.11 and its price to earning ratio is 9.7. What is the firm's stock…

A: Step 1: The calculation of the stock price AB1Earning per share $ 4.11 2Price-to-earning…

Q: Common Stockholders' Profitability Analysis A company reports the following: Net…

A: Return on stockholders' equity is calculated by dividing net income of company by average…

Q: Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net…

Q: Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall…

Q: what do these results say about the company

A: Return on Assets: This ratio shows how profitable a firm is relative to its assets. It is…

Q: The following data were taken from the financial statements of Gates Inc. for the current fiscal…

A: Formula: Return on common stockholders equity = ( Net income - preferred dividend ) / Average common…

Q: Assume that you are a consultant to a company, and you have been provided with the following data:…

A: The cost of equity can be calculated with the help of dividend discount model

Q: The following selected data were taken from the financial statements of Vidahill Inc. for December…

A: The financial ratios are a series of calculations between accounting accounts that show the economic…

Q: The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall…

A: Earnings per share on common stock: It is a financial ratio. It is calculating by divides net…

Q: Required: Determine the following measures for 20V2, rounding to one decimal place, except for…

A: Ratios play an important role in the analysis of the financial performance of an organization during…

Q: 4. The following balances were extracted from the books of Jojo Advance Marketing Company Limited on…

A: The question asked to compute the financial ratios. Financial ratios: Financial ratios indicate…

Q: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio. (Round…

A: Below mentioned Ration needs to be calculated Earning Per share Price Earning Ratio Dividend…

Q: The following information pertains to Dallas Company. Assume that all balance sheet amounts…

A: The return on shareholders' equity ratio displays the amount of money given back to the shareholders…

Q: Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall…

A: Formulas Ratio of Fixed Assets to Long-term Liabilities = (Fixed Assets / Long-term…

Q: A company has net income of $34.10 million. Stockholders' equity at the beginning of the year is…

A: The following formula is used to calculate the return on equity ratio: Return on Equity Ratio= Net…

Q: Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Following is the balance sheet of Rooney Company for Year 3: ROONEY COMPANY Balance sheet Assets $…

A: Ratio analyses are used to compare the data of two or more years. It helps for the decision-making…

Q: Find the working captital, Current ration :1, debt to assets ratio, free cash flow, earning per…

A: Ratio analysis refers to the analysis of various piece of financial information int he financial…

Q: Given the following information, which company's stockholders received the highest return in the…

A: A dividend is a disbursement made by a corporation or company to its shareholders, commonly either…

Q: Selling and administrative expenses 514,200 474,200 Income from operations 288,700 283,100 Other…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: DuPont system of analysis Use the following financial information for AT&T and Verizon to conduct a…

A: Performance in terms of asset utilization, profit earning ability, equity returns, etc. of two or…

Question

The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
December 31
Total assets
Notes payable (8% interest)
Common stock
Preferred 5% stock, $100 par
(no change during year)
Retained earnings
20Y7
$209,000
70,000
28,000
14,000
Return on total assets
debt.
20Y6
72,140
The 20Y7 net income was $20,790, and the 20Y6 net income was $10,750. No dividends on common stock were declared between 20Y5
and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
20Y7
$188,000
70,000
28,000
14,000
0.25
52,050
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. Round percentages to one decimal place.
Return on stockholders' equity
Return on common stockholders' equity
b. The profitability ratios indicate that the company's profitability has
X %
%
20Y5
%
$167,000
70,000
28,000
14,000
42,000
the return on stockholders' equity in both years, there must be
20Y6
%
%
%
. Since the rate of return on total assets is
leverage from the use of

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company reports basic earnings per share of $5.40, cash dividends per share of $2.20, and a market price per share of $65.70. The company's dividend yield equals: 8.07%. 3.35%. 12.39%. 3.21%. 3.11%.
Jolie Foster Care Homes Incorporated shows the following data: Total Assets $ 1,970,000 2,460,000 2,740,000 2,830,000 Year 20X1 20X2 20X3 20X4 Net Income $ 192,000 221,000 196,000 189,000 Year 20X1 20X2 20X3 20X4 a-1. Compute the ratio of net income to total assets for each year. Note: Input your answers as a percent rounded to 2 decimal places. Return on Assets Stockholders' Equity $ 1,460,000 1,845,000 1,910,000 1,900,000 % % % % Total Debt $ 510,000 615,000 830,000 930,000
Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with : Dividend Yield Debt ratio Current Ratio Price/Earnings Ratio Acid-test ratio Earnings per share 1. The amount of net income earned for each share of the company's common stock 2. The percentage of a stock's market value returned to stockholders as dividends each period 3. The ability to pay current liabilities with current assets. 4. The percentage of assets financed with debt. 5. The ability to pay all current liabilities if they come due immediately. 6. The market price of $1 of earnings.
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Interest expense Income tax expense Total costs and expenses Net income Current Year $ 35,467 102,794 127,925 11,888 335,329 $ 613,403 For both the current year and one year ago, compute the following ratios: ه له مه له :. .: له The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 149,683 117,626 162,500 183,594 $ 613,403 $ 486,429 247,201 Current Year 13,556 10,367 Vanu $ 797,424 Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share…
s
please answer parts 16, 17, and 18
Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 65 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $1,173,375 $995,425 Net income 259,200 203,900 Total $1,432,575 $1,199,325 Dividends: On preferred stock $8,400 $8,400 On common stock 17,550 17,550 Total dividends $25,950 $25,950 Retained earnings, December 31 $1,406,625 $1,173,375 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $1,622,790 $1,495,130 Cost of goods sold 611,010 562,130 Gross profit $1,011,780 $933,000 Selling expenses $341,930 $416,290 Administrative expenses 291,280 244,490 Total operating…
Find Out : (a)Earnings per share(b)Return on common stockholders' equity in %(c)Return on assets in %(d)Current ratio in :1(e)Accounts receivable turnover in times(f)Average collection period in days(g)Inventory turnover in times (h)Days in inventory in days (i)Times interest earned in times (j)Asset turnover in times (k)Debt to assets ratio in % (l)Free cash flow
Given the information above, the average P/E ratio 20X5–20X6 is closest to A. 49.34. B. 31.07. C. 20.32. D. 11.64.
A company reports earnings per share on common stock of $2.00 when the market price of per share of common stock is $50.000. What is the company’s price-earnings ratio?
A company reports the following: Net income Preferred dividends Average stockholders' equity $190,000 7,600 1,532,258 848,372 Average common stockholders' equity Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your answers to one decimal place. a. Return on Stockholders' Equity b. Return on Common Stockholders' Equity % %
please answer parts 7, 8, and 9.