SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $408,500 in 2023 and $335,800 in 2022. Equity and Liabilities 2023 2022 Share capital-common (132,300 shares issued) $ 1,255,500 $ 1,255,500 Retained earnings (Note 1) 425,600 285,800 Accrued liabilities 10,200 6,600 Notes payable (current) 72,800 62,300 Accounts payable 58,200 186,000 Total equity and liabilities $ 1,822,300 $ 1,796,200 Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,424,100 at December 31, 2021.)
SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $408,500 in 2023 and $335,800 in 2022. Equity and Liabilities 2023 2022 Share capital-common (132,300 shares issued) $ 1,255,500 $ 1,255,500 Retained earnings (Note 1) 425,600 285,800 Accrued liabilities 10,200 6,600 Notes payable (current) 72,800 62,300 Accounts payable 58,200 186,000 Total equity and liabilities $ 1,822,300 $ 1,796,200 Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,424,100 at December 31, 2021.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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