Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $3,700,000 Long-term debt (12% interest rate) $600,000 Total stockholders' equity $2,500,000 Interest paid on long-term debt $70,000 Net Income $290,000 Total assets at the beginning of the year were $3,100,000; total stockholders' equity was $2,300,000. The company's tax rate is 30%. 1. Compute the return on total assets. 2. Compute the return on equity.

Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $3,700,000 Long-term debt (12% interest rate) $600,000 Total stockholders' equity $2,500,000 Interest paid on long-term debt $70,000 Net Income $290,000 Total assets at the beginning of the year were $3,100,000; total stockholders' equity was $2,300,000. The company's tax rate is 30%. 1. Compute the return on total assets. 2. Compute the return on equity.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...

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