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Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts):  Return on common stockholders' equity  Earnings per share on common stock  Price-earnings ratio  Dividends per share of common stock  Dividend yield

Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts):  Return on common stockholders' equity  Earnings per share on common stock  Price-earnings ratio  Dividends per share of common stock  Dividend yield

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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Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 

  1. Return on common stockholders' equity 
  2. Earnings per share on common stock 
  3. Price-earnings ratio 
  4. Dividends per share of common stock 
  5. Dividend yield 
Marshall 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. $10,850,000 $10,000,000 6,000,000 5,450,000 $ 4,850,000 $ 4,550,000 $ 2,170,000 $ 2,000,000 1,627,500 1,500,000 $ 3,797,500 $ 3,500,000 $ 1,052,500 $ 1,050,000 99,500 $ 1,152,000 $ 1,070,000 132,000 $ 1,020,000 $ 950,000 Total operating expenses Income from operations Other income.. 20,000 Other expense (interest) Income before income tax 120,000 Income tax expense 420,000 400,000 Net income $ 600,000 $ 550,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Υ1 Assets Current assets: Cash .... $1,050,000 $ 950,000 Marketable securities... 301,000 420,000 Accounts receivable (net). Inventories . Prepaid expenses Total current assets 585,000 500,000 420,000 380,000 108,000 $ 2,464,000 20,000 $2,270,000 Long-term investments. Property, plant, and equipment (net) 800,000 800,000 5,760,000 $ 9,024,000 5,184,000 $8,254,000 Total assets . Liabilities Current liabilities.. $ 880,000 $ 800,000 Long-term liabilities: Mortgage note payable, 6%, . Bonds payable, 4%, Total long-term liabilities Total liabilities . $ 200,000 $ 3,000,000 $ 3,200,000 $ 4,080,000 3,000,000 $3,000,000 $3,800,000 Stockholders' Equity $ 250,000 $ 250,000 Preferred 4% stock, $5 par Common stock, $5 par.. Retained earnings... Total stockholders' equity . Total liabilities and stockholders' equity.. .... 500,000 4,194,000 $ 4,944,000 $ 9,024,000 500,000 3,704,000 $4,454,000 $8,254,000
Transcribed Image Text:Marshall 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. $10,850,000 $10,000,000 6,000,000 5,450,000 $ 4,850,000 $ 4,550,000 $ 2,170,000 $ 2,000,000 1,627,500 1,500,000 $ 3,797,500 $ 3,500,000 $ 1,052,500 $ 1,050,000 99,500 $ 1,152,000 $ 1,070,000 132,000 $ 1,020,000 $ 950,000 Total operating expenses Income from operations Other income.. 20,000 Other expense (interest) Income before income tax 120,000 Income tax expense 420,000 400,000 Net income $ 600,000 $ 550,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Υ1 Assets Current assets: Cash .... $1,050,000 $ 950,000 Marketable securities... 301,000 420,000 Accounts receivable (net). Inventories . Prepaid expenses Total current assets 585,000 500,000 420,000 380,000 108,000 $ 2,464,000 20,000 $2,270,000 Long-term investments. Property, plant, and equipment (net) 800,000 800,000 5,760,000 $ 9,024,000 5,184,000 $8,254,000 Total assets . Liabilities Current liabilities.. $ 880,000 $ 800,000 Long-term liabilities: Mortgage note payable, 6%, . Bonds payable, 4%, Total long-term liabilities Total liabilities . $ 200,000 $ 3,000,000 $ 3,200,000 $ 4,080,000 3,000,000 $3,000,000 $3,800,000 Stockholders' Equity $ 250,000 $ 250,000 Preferred 4% stock, $5 par Common stock, $5 par.. Retained earnings... Total stockholders' equity . Total liabilities and stockholders' equity.. .... 500,000 4,194,000 $ 4,944,000 $ 9,024,000 500,000 3,704,000 $4,454,000 $8,254,000
Marsnall inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 tetained earnings, January 1.. let income. $3,704,000 600,000 $4,304,000 $3,264,001 550,000 $3,814,000 otal .. Dividends: On preferred stock .... On common stock...... Total dividends .... $ 10,000 100,000 $ 110,000 $4,194,000 $ 10,000 .... 100,000 $ 110,000 $3,704,00( letained earnings, December 31 .. . ....
Transcribed Image Text:Marsnall inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 tetained earnings, January 1.. let income. $3,704,000 600,000 $4,304,000 $3,264,001 550,000 $3,814,000 otal .. Dividends: On preferred stock .... On common stock...... Total dividends .... $ 10,000 100,000 $ 110,000 $4,194,000 $ 10,000 .... 100,000 $ 110,000 $3,704,00( letained earnings, December 31 .. . ....
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