I uploaded pictures for problem 17-4B. I am trying to figure out the    14. Return on Common Stockhholders Equity  15. Earnings per share on Common stock 16. Price Earnings Ratio

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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I uploaded pictures for problem 17-4B.

I am trying to figure out the 

 

14. Return on Common Stockhholders Equity 

15. Earnings per share on Common stock

16. Price Earnings Ratio

 

percentages, except for per-share amounts:
877
Stargel Inc.
Comparative Income Statement
ar the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Sales
$10,000,000
$9,400,000
Cost of goods sold..
Gross profit.
5,350,000
$ 4,650,000
$ 2,000,000
4,950,000
$4,450,000
Selling expenses
Administrative expenses.
$1,880,000
1,500,000
1,410,000
Total operating expenses
Income from operations
Other revenue...
$ 3,500,000
$ 1,150,000
$3,290,000
$1,160,000
150,000
140,000
$ 1,300,000
$1,300,000
Other expense (interest)
Income before income tax
170,000
150,000
$1,150,000
$ 1,130,000
Income tax expense.
230,000
225,000
Net income
$ 9.00,000
$ 925,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Assets
Current assets:
Cash
$ 500,000
$ 400,000
Marketable securities.
1,010,000
1,000,000
Accounts receivable (net).
740,000
510,000
Inventories
1,190,000
950,000
Prepaid expenses
Total current assets..
250,000
229,000
$3,690,000
$3,089,000
Long-term investments..
Property, plant, and equipment (net)
2,350,000
2,300,000
3,740,000
3,366,000
Total assets
$9,780,000
$8,755,000
Liabilities
Current liabilities.
$ 900,000
$ 880,000
Long-term liabilities:
Mortgage note payable, 10%.
Bonds payable, 10%..
Total long-term liabilities
Total liabilities
$ 200,000
$
01
1,500,000
1,500,000
$1,700,000
$1,500,000
$2,600,000
$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par...
Common stock, $5 par.
Retained earnings..
$ 500,000
$ 500,000
500,000
500,000
6,180,000
5,375,000
Total stockholders' equity
$7,180,000
$6,375,000
Total liabilities and stockholders' equity.
$9,780,000
$8,755,000
Instructions
Determine the following measures for 20Y2, rounding to one decimal place including
Transcribed Image Text:percentages, except for per-share amounts: 877 Stargel Inc. Comparative Income Statement ar the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales $10,000,000 $9,400,000 Cost of goods sold.. Gross profit. 5,350,000 $ 4,650,000 $ 2,000,000 4,950,000 $4,450,000 Selling expenses Administrative expenses. $1,880,000 1,500,000 1,410,000 Total operating expenses Income from operations Other revenue... $ 3,500,000 $ 1,150,000 $3,290,000 $1,160,000 150,000 140,000 $ 1,300,000 $1,300,000 Other expense (interest) Income before income tax 170,000 150,000 $1,150,000 $ 1,130,000 Income tax expense. 230,000 225,000 Net income $ 9.00,000 $ 925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Assets Current assets: Cash $ 500,000 $ 400,000 Marketable securities. 1,010,000 1,000,000 Accounts receivable (net). 740,000 510,000 Inventories 1,190,000 950,000 Prepaid expenses Total current assets.. 250,000 229,000 $3,690,000 $3,089,000 Long-term investments.. Property, plant, and equipment (net) 2,350,000 2,300,000 3,740,000 3,366,000 Total assets $9,780,000 $8,755,000 Liabilities Current liabilities. $ 900,000 $ 880,000 Long-term liabilities: Mortgage note payable, 10%. Bonds payable, 10%.. Total long-term liabilities Total liabilities $ 200,000 $ 01 1,500,000 1,500,000 $1,700,000 $1,500,000 $2,600,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par... Common stock, $5 par. Retained earnings.. $ 500,000 $ 500,000 500,000 500,000 6,180,000 5,375,000 Total stockholders' equity $7,180,000 $6,375,000 Total liabilities and stockholders' equity. $9,780,000 $8,755,000 Instructions Determine the following measures for 20Y2, rounding to one decimal place including
PR 17-4B Measures of liquidity, solvency and profitability
The comparative financial statements of Stargel Inc are as follows. The market price of
Stargel common stock was $119.70 on December 31, 20Y2.
Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Retained earnings, January 1
$5,375,000
$4,545,000
Net income
925,000
Total...
$6,275,000
$5,470,000
Dividends:
Preferred stock dividends
$ 45,000
Common stock dividends
Total dividends
Retained earnings, December 31
$6,180,000
$5,375,000
Transcribed Image Text:PR 17-4B Measures of liquidity, solvency and profitability The comparative financial statements of Stargel Inc are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $5,375,000 $4,545,000 Net income 925,000 Total... $6,275,000 $5,470,000 Dividends: Preferred stock dividends $ 45,000 Common stock dividends Total dividends Retained earnings, December 31 $6,180,000 $5,375,000
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