The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $42,680 Accounts receivable (net) 26,022 Inventory 30,317 Property, plant, and equipment 285,609 Total Assets $384,628 Liabilities and Stockholders' Equity Current liabilities $57,381 Long-term liabilities 89,085 Common stock, $20 par 137,220 Retained earnings 100,942 Total Liabilities and stkholders' equity $384,628 Income Statement Sales $80,788 Cost of goods sold 36,355 Gross margin $44,433 Operating expenses 21,669 Net income $22,764 Number of shares of common stock 6,861 Market price of common stock $20 Dividends per share $1.00 Cash provided by operations $40,000
The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $42,680 Accounts receivable (net) 26,022 Inventory 30,317 Property, plant, and equipment 285,609 Total Assets $384,628 Liabilities and Stockholders' Equity Current liabilities $57,381 Long-term liabilities 89,085 Common stock, $20 par 137,220 Retained earnings 100,942 Total Liabilities and stkholders' equity $384,628 Income Statement Sales $80,788 Cost of goods sold 36,355 Gross margin $44,433 Operating expenses 21,669 Net income $22,764 Number of shares of common stock 6,861 Market price of common stock $20 Dividends per share $1.00 Cash provided by operations $40,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the return on stockholders equity ?
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Step 1 Introduction
The return on stockholders equity represents the ability of the firm to generate profits from its shareholder's equity. It tells about the ratio in which business has earned against investment made by owner.
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