Cuny, Inc. reported the following common size date for the year ended December 31, 2022: (Income Statement) Sales Cost of Goods Sold Operating Expenses Interest Expenses Income Tax Net Income (Balance Sheet) Cash Accounts Receivable Inventory Fixed Assets Total Assets (%) 4.8 Accounts Payable 14.9 Accrued Liabilities 49.4 Long-term Debt 30.9 Common Equity 100.0 Total Liabilities and Equity For 2021, Cuny, Inc. reported sales of $183,100,000 and for 2022, sales of $215,600,000. (%) 100.0 58.2 30.2 0.7 5.7 5.2 Use this information to answer question 3 and 4. (%) 15.0 13.8 23.2 48.0 100.0 At the end of 2021, Cuny, Inc.'s total assets were $75,900,000 and common equity was $37,800,000. At the end of 2022, total assets were $95,300,000.
Cuny, Inc. reported the following common size date for the year ended December 31, 2022: (Income Statement) Sales Cost of Goods Sold Operating Expenses Interest Expenses Income Tax Net Income (Balance Sheet) Cash Accounts Receivable Inventory Fixed Assets Total Assets (%) 4.8 Accounts Payable 14.9 Accrued Liabilities 49.4 Long-term Debt 30.9 Common Equity 100.0 Total Liabilities and Equity For 2021, Cuny, Inc. reported sales of $183,100,000 and for 2022, sales of $215,600,000. (%) 100.0 58.2 30.2 0.7 5.7 5.2 Use this information to answer question 3 and 4. (%) 15.0 13.8 23.2 48.0 100.0 At the end of 2021, Cuny, Inc.'s total assets were $75,900,000 and common equity was $37,800,000. At the end of 2022, total assets were $95,300,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need a detailed explanation of how you got the answer NOT just the answer please. Please see attached image for question. Thank you.
Transcribed Image Text:Cuny, Inc. reported the following common size date for the year ended December
31, 2022:
(Income Statement)
Sales
Cost of Goods Sold
Operating Expenses
Interest Expenses
Income Tax
Net Income
(Balance Sheet)
Cash
Accounts Receivable
Inventory
Fixed Assets
Total Assets
(%)
4.8
Accounts Payable
14.9 Accrued Liabilities
49.4
Long-term Debt
30.9 Common Equity
100.0
Total Liabilities and
Equity
For 2021, Cuny, Inc. reported sales of $183,100,000 and for 2022, sales of
$215,600,000.
(%)
100.0
58.2
30.2
0.7
5.7
5.2
Use this information to answer question 3 and 4.
(%)
15.0
13.8
23.2
48.0
100.0
At the end of 2021, Cuny, Inc.'s total assets were $75,900,000 and common equity
was $37,800,000.
At the end of 2022, total assets were $95,300,000.
Transcribed Image Text:4. Calculate Cuny, Inc.'s return on equity (ROE, as of December 31, 2022) using
average equity. Note: average equity = (equity at beginning of the year + equity
at end of the year)/2.
A. 25.2%
B. 26.8%
C. 27.4%
D. Can't tell. More information is needed.
E. None of above.
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