Here are comparative financial statement data for Bonita Company and Linda Company, two competitors. All data are as of December 31, 2022, and December 31, 2021.     Bonita Company   Linda Company     2022   2021   2022   2021 Net sales   $1,836,000       $561,000     Cost of goods sold   1,029,996       297,330     Operating expenses   269,892       79,662     Interest expense   9,180       4,488     Income tax expense   53,244       6,171     Current assets   326,500   $310,300   83,200   $78,000 Plant assets (net)   519,000   499,100   139,200   125,700 Current liabilities   65,000   75,600   36,200   29,600 Long-term liabilities   107,600   89,800   28,800   24,400 Common stock, $10 par   505,000   505,000   116,000   116,000 Retained earnings   167,900   139,000   41,400   33,700       Compute the 2022 return on assets and the return on common stockholders’ equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.)     Bonita Company   Linda Company Return on assets   enter percentages rounded to 1 decimal place  %   enter percentages rounded to 1 decimal place  % Return on common stockholders’ equity   enter percentages rounded to 1 decimal place  %   enter percentages rounded to 1 decimal place

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Here are comparative financial statement data for Bonita Company and Linda Company, two competitors. All data are as of December 31, 2022, and December 31, 2021.

   
Bonita Company
 
Linda Company
   
2022
 
2021
 
2022
 
2021
Net sales
  $1,836,000       $561,000    
Cost of goods sold
  1,029,996       297,330    
Operating expenses
  269,892       79,662    
Interest expense
  9,180       4,488    
Income tax expense
  53,244       6,171    
Current assets
  326,500   $310,300   83,200   $78,000
Plant assets (net)
  519,000   499,100   139,200   125,700
Current liabilities
  65,000   75,600   36,200   29,600
Long-term liabilities
  107,600   89,800   28,800   24,400
Common stock, $10 par
  505,000   505,000   116,000   116,000
Retained earnings
  167,900   139,000   41,400   33,700
 
 
 
Compute the 2022 return on assets and the return on common stockholders’ equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.)

   
Bonita Company
 
Linda Company
Return on assets
  enter percentages rounded to 1 decimal place  %   enter percentages rounded to 1 decimal place  %
Return on common stockholders’ equity
  enter percentages rounded to 1 decimal place  %   enter percentages rounded to 1 decimal place  %

Compute the 2022 return on assets and the return on common stockholders’ equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.)

   
Bonita Company
 
Linda Company
Return on assets
  enter percentages rounded to 1 decimal place  %   enter percentages rounded to 1 decimal place  %
Return on common stockholders’ equity
  enter percentages rounded to 1 decimal place  %   enter percentages rounded to 1 decimal place  %
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