Somerville Company Statement of Retained Earnings For the Year Ended December 31, 20X2 Balance, beginning of period $1.979,155 Net income 915.197 $2.894.352 Toeal Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period $2612465 Somerville Company Comparative Balance Sheets At December31, 20X1 and 20X2 20X1 20X2 Assets Currene assets: Cash $2,875,000 $2.580,000 Marketable securities 800,000 700,000 Accounts receivable (ner) 939,776 690,000 Iaventories 490,000 260,000 Ocher 93,000 74,261 Total current assets $5.197.776 $4.304,261 Property and equipment: Land $1,575,000 $1,067.315 Building and equipment (net) Total long-term assets 1,348,800 $2,923,800 S8,121,576 1,150,000 $2.217.315 Total assets $6.521,576 Liabilities and Stockholders Equity Currene liabilities: Notes payable, short term Accounts payable Carrent maturity of long-term debt Accrued payables $1,170,127 $ $43,641 298,484 101,500 3,000 2,000 200,000 $1,671,611 57.780 $ 704,921 Total current liabilities Long-term liabilities: Bonds payable, 10% 500,000 S00.000 Total liabilities $2,171,611 $1,204,921 Stockholders equity: Preferred stock, $25 par, 8% Common stock, $1.50 par Additional paid-in capital" Retained camings Total stockholders equity Total liabilities and stockholders' equity $1,000,000 $1,000,000 337.500 337.500 2,000,000 2,000,000 2,612,465 1,979,155 $5,949.965 $5.316,655 $8,121,576 $6.521,576 "For comman stack only.
Somerville Company Statement of Retained Earnings For the Year Ended December 31, 20X2 Balance, beginning of period $1.979,155 Net income 915.197 $2.894.352 Toeal Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period $2612465 Somerville Company Comparative Balance Sheets At December31, 20X1 and 20X2 20X1 20X2 Assets Currene assets: Cash $2,875,000 $2.580,000 Marketable securities 800,000 700,000 Accounts receivable (ner) 939,776 690,000 Iaventories 490,000 260,000 Ocher 93,000 74,261 Total current assets $5.197.776 $4.304,261 Property and equipment: Land $1,575,000 $1,067.315 Building and equipment (net) Total long-term assets 1,348,800 $2,923,800 S8,121,576 1,150,000 $2.217.315 Total assets $6.521,576 Liabilities and Stockholders Equity Currene liabilities: Notes payable, short term Accounts payable Carrent maturity of long-term debt Accrued payables $1,170,127 $ $43,641 298,484 101,500 3,000 2,000 200,000 $1,671,611 57.780 $ 704,921 Total current liabilities Long-term liabilities: Bonds payable, 10% 500,000 S00.000 Total liabilities $2,171,611 $1,204,921 Stockholders equity: Preferred stock, $25 par, 8% Common stock, $1.50 par Additional paid-in capital" Retained camings Total stockholders equity Total liabilities and stockholders' equity $1,000,000 $1,000,000 337.500 337.500 2,000,000 2,000,000 2,612,465 1,979,155 $5,949.965 $5.316,655 $8,121,576 $6.521,576 "For comman stack only.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice Pack
Calculating the Average Common
the Return on Stockholders’ Equity
Refer to the information for Somerville Company on the previous pages.
Required:
Note: Round answers to four decimal places.
1. Calculate the average common stockholders’ equity.
2. Calculate the return on stockholders’ equity
Transcribed Image Text:Somerville Company
Statement of Retained Earnings
For the Year Ended December 31, 20X2
Balance, beginning of period
$1.979,155
Net income
915.197
$2.894.352
Toeal
Preferred dividends
(80,000)
Dividends to common stockholders
(201,887)
Balance, end of period
$2612465
Somerville Company
Comparative Balance Sheets
At December31, 20X1 and 20X2
20X1
20X2
Assets
Currene assets:
Cash
$2,875,000
$2.580,000
Marketable securities
800,000
700,000
Accounts receivable (ner)
939,776
690,000
Iaventories
490,000
260,000
Ocher
93,000
74,261
Total current assets
$5.197.776
$4.304,261
Property and equipment:
Land
$1,575,000
$1,067.315
Building and equipment (net)
Total long-term assets
1,348,800
$2,923,800
S8,121,576
1,150,000
$2.217.315
Total assets
$6.521,576
Liabilities and Stockholders Equity
Currene liabilities:
Notes payable, short term
Accounts payable
Carrent maturity of long-term debt
Accrued payables
$1,170,127
$ $43,641
298,484
101,500
3,000
2,000
200,000
$1,671,611
57.780
$ 704,921
Total current liabilities
Long-term liabilities:
Bonds payable, 10%
500,000
S00.000
Total liabilities
$2,171,611
$1,204,921
Stockholders equity:
Preferred stock, $25 par, 8%
Common stock, $1.50 par
Additional paid-in capital"
Retained camings
Total stockholders equity
Total liabilities and stockholders' equity
$1,000,000
$1,000,000
337.500
337.500
2,000,000
2,000,000
2,612,465
1,979,155
$5,949.965
$5.316,655
$8,121,576
$6.521,576
"For comman stack only.
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