Flounder Corp. decided to issue common stock and used the $246,000 proceeds to redeem all of its outstanding bonds on January 1, 2025. The following information is available for the company for 2025 and 2024. Net income Dividends declared for preferred stockholders Average common stockholders' equity Total assets Current liabilities Total liabilities (a) 2025 Return on common stockholders' equity $180,885 9,500 333,000 2024 9,500 1,135,000 889,000 1,468,000 1,468,000 144,000 144,000 579,000 $160,630 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2025 2024 (c1) Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.)
Flounder Corp. decided to issue common stock and used the $246,000 proceeds to redeem all of its outstanding bonds on January 1, 2025. The following information is available for the company for 2025 and 2024. Net income Dividends declared for preferred stockholders Average common stockholders' equity Total assets Current liabilities Total liabilities (a) 2025 Return on common stockholders' equity $180,885 9,500 333,000 2024 9,500 1,135,000 889,000 1,468,000 1,468,000 144,000 144,000 579,000 $160,630 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2025 2024 (c1) Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Flounder Corp. decided to issue common stock and used the $246,000 proceeds to redeem all of its outstanding bonds on January 1,
2025. The following information is available for the company for 2025 and 2024.
Net income
Dividends declared for preferred stockholders
Average common stockholders' equity
Total assets
Current liabilities
Total liabilities
(a)
2025
Return on common stockholders' equity
$180,885
9,500
333,000
2024
9,500
1,135,000
889,000
1,468,000 1,468,000
144,000
144,000
579,000
$160,630
Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.)
2025
2024
(c1)
Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.)
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