Property plant and equipment $3,200,000 Liabilities Current Liabilities $1,000,000 Note payable, 6%, due in 15 years $2,000,000 Total Liabilities $3,000,000 Stockholders’ equity Preferred $10 stock, $100 par (no change during year) $1,000,000 Common Stock $10 par (no change during year) $2,000,000 Retained Earnings: Balance, beginning of year $1,570,000 Net Income 930,000 Preferred Dividends (100,000) Common Dividends (400,000) Balance, beginning of year $2,000,000 Total Stockholders’ equity $5,000,000 Sales $18,900,000 Interest Expense $120,000 Assuming that Long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the Returns on Stockholders’ equity. round to one decimal place. How to calculate the previous year/beginning of the year balance in Stockholders’ equity? Thank you
Property plant and equipment $3,200,000
Liabilities
Current Liabilities $1,000,000
Note payable, 6%, due in 15 years $2,000,000
Total Liabilities $3,000,000
Common Stock $10 par (no change during year) $2,000,000
Balance, beginning of year $1,570,000
Net Income 930,000
Preferred Dividends (100,000)
Common Dividends (400,000)
Balance, beginning of year $2,000,000
Total Stockholders’ equity $5,000,000
Sales $18,900,000
Interest Expense $120,000
Assuming that Long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the Returns on Stockholders’ equity. round to one decimal place.
How to calculate the previous year/beginning of the year balance in Stockholders’ equity?
Thank you
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