The comparative statements of Dubai Company are presented below. All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020. Required: Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.) Earnings per share. Return on common stockholders’ equity. Return on assets.
The comparative statements of Dubai Company are presented below. All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020. Required: Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.) Earnings per share. Return on common stockholders’ equity. Return on assets.
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
Related questions
Question
The comparative statements of Dubai Company are presented below.
All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020.
Required:
Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.)
- Earnings per share.
- Return on common
stockholders’ equity. - Return on assets.
![Dubai Company
Income Statement
For the Year Ended December 31
2021
$1,828,500
1,010,500
818,000
516,000
302,000
2020
S1,750,500
996,000
754,500
479,000
275,500
Net sales
Cost of goods sold
Gross profit
Selling and administrative expense
Income from operations
Other expenses and losses
Interest expense
17,000
285,000
75,000
$ 210,000
14,000
261,500
Income before income taxes
Income tax expense
Net income
77,000
$ 184,500
Dubai Company
Balance Sheets
December 31
Assets
Current assets
Cash
2021
2020
$ 60,100
$ 64,200
50,000
102,800
115,500
332,500
520,300
$852,800
Short-term investments
64,000
122,800
118.000
364,900
605.300
$970,200
Accounts receivable (net)
Inventory
Total current assets
Plant assets (net)
Total assets
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
Income taxes payable
$160,000
43,500
203,500
$145,400
42,000
187,400
Total current liabilities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbce01ff1-a1c9-497b-969b-c9f9d398e9c0%2F0f7e42e1-899f-4445-96f1-4cad9586e1ea%2Ffe6epy_processed.png&w=3840&q=75)
Transcribed Image Text:Dubai Company
Income Statement
For the Year Ended December 31
2021
$1,828,500
1,010,500
818,000
516,000
302,000
2020
S1,750,500
996,000
754,500
479,000
275,500
Net sales
Cost of goods sold
Gross profit
Selling and administrative expense
Income from operations
Other expenses and losses
Interest expense
17,000
285,000
75,000
$ 210,000
14,000
261,500
Income before income taxes
Income tax expense
Net income
77,000
$ 184,500
Dubai Company
Balance Sheets
December 31
Assets
Current assets
Cash
2021
2020
$ 60,100
$ 64,200
50,000
102,800
115,500
332,500
520,300
$852,800
Short-term investments
64,000
122,800
118.000
364,900
605.300
$970,200
Accounts receivable (net)
Inventory
Total current assets
Plant assets (net)
Total assets
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
Income taxes payable
$160,000
43,500
203,500
$145,400
42,000
187,400
Total current liabilities
![Bonds payable
Total liabilities
210,000
413,500
200,000
387,400
Stockholders' equity
Common stock (S5 par)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders’ equity
280,000
276,700
556,700 465,400
$970,200 S852,800
300,000
165,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbce01ff1-a1c9-497b-969b-c9f9d398e9c0%2F0f7e42e1-899f-4445-96f1-4cad9586e1ea%2Fwc3sxos_processed.png&w=3840&q=75)
Transcribed Image Text:Bonds payable
Total liabilities
210,000
413,500
200,000
387,400
Stockholders' equity
Common stock (S5 par)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders’ equity
280,000
276,700
556,700 465,400
$970,200 S852,800
300,000
165,400
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning