Current Attempt in ProgressPharoah Company has $1,140,000 in assets and $1.140,000 in stockholders' equity, with 42,600 shares outstanding the entire year. Ithas a return on assets of 10%. During 2021, it had net income of $114,000. On January 1, 2022, it issued $393,000 in debt at 4% andimmediately repurchased 21,300 shares for $393,000. Management expected that, had it not issued the debt, it would have had netincome of $114,000 in 2022. Assume the company pays dividends on common stock equal to its net income each year. Also, assumethe accrued interest on the debt was paid at December 31, 2022 and the company has no other debt outstanding at year-end.Determine the company's net income and earnings per share for 2021 and 2022. (Ignore taxes in your computations) (Roundearnings per share to 2 decimal places, eg. $2.66)Net income$Earnings per share $2021Return on common stockholders' equityDebt to assets ratioCompute the company's return on common stockholders' equity for 2021 and 2022. (Round answers to 2 decimal places, eg15.25%)$202120222021Compute the company's debt to assets ratio for 2021 and 2022. (Round answers to 2 decimal places, eg. 15.25%)20222022

Sales less cost of goods sold, selling, general and administrative costs, operating costs,…

Answered: Pharoah Company has $1,140,000 in…

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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