Sunland Medical manufactures hospital beds and other institutional furniture. The company's comparative balance. and income statement for 2019 and 2020 follow. Sunland Medical Comparative Balance Sheet As of December 31 Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets. Liabilities and Stockholders' Equity Current liabilities Long-term debt 2020 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends. Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year $390,000 1,079,000 729,000 681,100 381,400 247,100 2,579,400 2,122,100 8,659,740 8,439,815. $11,239,140 $10,561,915 $2,846,050 3,892,600 Total liabilities 6,738,650 Preferred stock, $5 par value 58,900 Common stock, $0.25 par value 103,850 Retained earnings 4,194,940 3,660,515 Total stockholders' equity 4,358,440 3,823,265 Total liabilities and stockholders' equity $11,239,140 $10,561,915 2019 $3,178,000 3,702,700 6,880,700 58,900 104,600 $417,450 776,450 Sunland Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 $10,177,200 $9,614,000 5,611,950 5,298,800 4,565,250 4,315,200 2,840,200 2,634,150 1,725,050 1,681,050 300,300 308,600 1,424,750 1,372,450 411,735 $960,715 427,425 $997,325 29,450 433,350 462,800 534,425 3,660,515 3,142,350 $4,194,940 $3,660,515 29,450 413,100 442,550 518,165 Calculate the following profitability ratios for 2020. (Round answers to 1 decimal place, e.g. 50.1%.) return on assets return on common stockholders' equity
Sunland Medical manufactures hospital beds and other institutional furniture. The company's comparative balance. and income statement for 2019 and 2020 follow. Sunland Medical Comparative Balance Sheet As of December 31 Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets. Liabilities and Stockholders' Equity Current liabilities Long-term debt 2020 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends. Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year $390,000 1,079,000 729,000 681,100 381,400 247,100 2,579,400 2,122,100 8,659,740 8,439,815. $11,239,140 $10,561,915 $2,846,050 3,892,600 Total liabilities 6,738,650 Preferred stock, $5 par value 58,900 Common stock, $0.25 par value 103,850 Retained earnings 4,194,940 3,660,515 Total stockholders' equity 4,358,440 3,823,265 Total liabilities and stockholders' equity $11,239,140 $10,561,915 2019 $3,178,000 3,702,700 6,880,700 58,900 104,600 $417,450 776,450 Sunland Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 $10,177,200 $9,614,000 5,611,950 5,298,800 4,565,250 4,315,200 2,840,200 2,634,150 1,725,050 1,681,050 300,300 308,600 1,424,750 1,372,450 411,735 $960,715 427,425 $997,325 29,450 433,350 462,800 534,425 3,660,515 3,142,350 $4,194,940 $3,660,515 29,450 413,100 442,550 518,165 Calculate the following profitability ratios for 2020. (Round answers to 1 decimal place, e.g. 50.1%.) return on assets return on common stockholders' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunland Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet
and income statement for 2019 and 2020 follow.
Sunland Medical
Comparative Balance Sheet
As of December 31
Assets
Current assets
Cash
Accounts receivable, net
Inventory
Other current assets
Total current assets
Property, plant, & equipment, net
Total assets
Liabilities and Stockholders' Equity
Current liabilities.
Long-term debt
Total liabilities
Preferred stock, $5 par value
Common stock, $0.25 par value
Retained earnings
Total stockholders' equity
$3,178,000
3,702,700
6,880,700
58,900
104,600
4,194,940
4,358,440
Total liabilities and stockholders' equity $11,239,140
Sales revenue (all on account)
Cost of goods sold
Gross profit
Operating expenses
Net operating income
Interest expense
Net income before taxes
Income taxes (30%)
Net income
Dividends paid
Preferred dividends
Common dividends
2020
Total dividends paid
Net income retained
$390,000
1,079,000
729,000
381,400
2,579,400
8,659,740
$11,239,140
Retained earnings, beginning of year
Retained earnings, end of year
2019
Sunland Medical
Comparative Income Statement and Statement of Retained Earnings
For the Year
$417,450
776,450
681,100
247,100
2,122,100
8,439,815
$10,561,915
$2,846,050
3,892,600
6,738,650
58,900
103,850
3,660,515
3,823,265
$10,561,915
2020
$10,177,200
5,611,950
4,565,250
2,840,200
1,725,050
300,300
1,424,750
427,425
$997,325
29,450
433,350
462,800
534,425
3,660,515
$4,194,940
2019
$9,614,000
5,298,800
4,315,200
2,634,150
1,681,050
308,600
1,372,450
411,735
$960,715
29,450
413,100
442,550
518,165
3,142,350
$3,660,515
Calculate the following profitability ratios for 2020. (Round answers to 1 decimal place, e.g. 50.1%.)
return on assets
return on common stockholders' equity
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