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During 2021, Bob Collins purchased 300 shares of common stock issued by Doctor's Medical Supply for $14,600 including commission. Later in the same year, Bob sold the shares for $15,600 after commission. Calculate the following. (Round all answers to two decimal places.) 1. Profit on this stock transaction: 2. Percentage return on investment: 08 % Parentheses X S

During 2021, Bob Collins purchased 300 shares of common stock issued by Doctor's Medical Supply for $14,600 including commission. Later in the same year, Bob sold the shares for $15,600 after commission. Calculate the following. (Round all answers to two decimal places.) 1. Profit on this stock transaction: 2. Percentage return on investment: 08 % Parentheses X S

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3E
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**Stock Investment Calculation Example** During 2021, Bob Collins purchased 300 shares of common stock issued by Doctor's Medical Supply for $14,600, including commission. Later in the same year, Bob sold the shares for $15,600 after commission. Calculate the following (round all answers to two decimal places): 1. **Profit on this stock transaction:** $\_\_\_ 2. **Percentage return on investment:** $\_\_\_% To solve these, follow the steps below: **1. Calculating Profit:** - Subtract the purchase cost from the selling price. - Profit = Selling Price - Purchase Price = $15,600 - $14,600 **2. Calculating Percentage Return on Investment:** - Divide the profit by the initial purchase cost, then multiply by 100 to get the percentage. - Percentage Return = (Profit / Purchase Price) × 100 Ensure all calculations are rounded to two decimal places for precision.
Transcribed Image Text:**Stock Investment Calculation Example** During 2021, Bob Collins purchased 300 shares of common stock issued by Doctor's Medical Supply for $14,600, including commission. Later in the same year, Bob sold the shares for $15,600 after commission. Calculate the following (round all answers to two decimal places): 1. **Profit on this stock transaction:** $\_\_\_ 2. **Percentage return on investment:** $\_\_\_% To solve these, follow the steps below: **1. Calculating Profit:** - Subtract the purchase cost from the selling price. - Profit = Selling Price - Purchase Price = $15,600 - $14,600 **2. Calculating Percentage Return on Investment:** - Divide the profit by the initial purchase cost, then multiply by 100 to get the percentage. - Percentage Return = (Profit / Purchase Price) × 100 Ensure all calculations are rounded to two decimal places for precision.
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