The following information pertains to Wamser Company. Compute the return on common stock equity. Cash Accounts receivable Inventory Plant assets (net) Total assets Accounts payable $22,500 $126,000 $75,000 $385,000 $608,500 $75,500 Accrued taxes and expenses payable $24,500 Long-term debt $48,500 Common stock ($10 par) $160,000 Paid-in capital in excess of par $88,500 Retained earnings $211,500 Total equities $608,500 Net sales (all on credit) $800,000 Cost of goods sold Net income $600,000 $81,000

The following information pertains to Wamser Company. Compute the return on common stock equity. Cash Accounts receivable Inventory Plant assets (net) Total assets Accounts payable $22,500 $126,000 $75,000 $385,000 $608,500 $75,500 Accrued taxes and expenses payable $24,500 Long-term debt $48,500 Common stock ($10 par) $160,000 Paid-in capital in excess of par $88,500 Retained earnings $211,500 Total equities $608,500 Net sales (all on credit) $800,000 Cost of goods sold Net income $600,000 $81,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...

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The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Brief Exercise 15-20 Calculating the Average Common Stockholders Equity and 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.
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