purchase treasury stock. The following financial information is available for Martinez Company for the years 2025 and 2024. 2025 $9,100,000 2,590,500 510,000 724,500 1,036,200 350,000 350,000 14,500,000 18,500,000 16,500,000 19.375,000 Total liabilities (year-end) 6,046.500 3,034.000 Avg. total common stockholders equity 17,860,000 26,790,000 Sales revenue Net income Interest expense Tax expense Dividends paid on common stock Dividends paid on preferred stock Total assets (year-end) Average total assets (1) (2) 2024 $9,100,000 2,983,750 160,000 (a) Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, eg. 12.5 or 12.5%) Return on assets Return on common stockholders uit 968,250 1.253,175 2025 2024
purchase treasury stock. The following financial information is available for Martinez Company for the years 2025 and 2024. 2025 $9,100,000 2,590,500 510,000 724,500 1,036,200 350,000 350,000 14,500,000 18,500,000 16,500,000 19.375,000 Total liabilities (year-end) 6,046.500 3,034.000 Avg. total common stockholders equity 17,860,000 26,790,000 Sales revenue Net income Interest expense Tax expense Dividends paid on common stock Dividends paid on preferred stock Total assets (year-end) Average total assets (1) (2) 2024 $9,100,000 2,983,750 160,000 (a) Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, eg. 12.5 or 12.5%) Return on assets Return on common stockholders uit 968,250 1.253,175 2025 2024
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
rr
Transcribed Image Text:pany ma
purchase treasury stock. The following financial information is available for Martinez Company for the years 2025 and 2024.
Sales revenue
Net income
Interest expense
Tax expense
(a)
Dividends paid on common stock
Dividends paid on preferred stock
350,000
Total assets (year-end)
14,500,000 18,500,000
Average total assets
16,500,000 19,375,000
Total liabilities (year-end)
6,046,500
3,034,000
Avg. total common stockholders' equity 17,860,000
26,790,000
(1) Return on assets
(2)
(3)
(4)
(5)
Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, eg. 12.5 or 12.5%)
2025
2024
$9,100,000
$9,100,000
2,590,500 2,983,750
160,000
968,250
Payout ratio
510,000
Debt to assets ratio.
724,500
Times interest earned
Return on common stockholders' equity
1,036,200
1,253,175
350,000
2025
%
%
%
%
times
2024
%
%
***
times
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education