Total assets Notes payable (8% interest) Common stock Preferred 7% stock, $100 par (no change during year) Retained earnings $333,000 110,000 44,000 22,000 116,085 $300,000 110,000 44,000 22,000 87,480 $267,000 110,000 44,000 22,000 66,000 The 20Y7 net income was $30,145, and the 20Y6 net income was $23,020. No dividends on common stock were declar and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
Total assets Notes payable (8% interest) Common stock Preferred 7% stock, $100 par (no change during year) Retained earnings $333,000 110,000 44,000 22,000 116,085 $300,000 110,000 44,000 22,000 87,480 $267,000 110,000 44,000 22,000 66,000 The 20Y7 net income was $30,145, and the 20Y6 net income was $23,020. No dividends on common stock were declar and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
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
Related questions
Question
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
Do not give answer in image
Transcribed Image Text:eBook
Total assets
Notes payable (8% interest)
Common stock
Preferred 7% stock, $100 par
(no change during year)
Retained earnings
Show Me How
20Y7
Feedback
$333,000
110,000
Check My Work
44,000
22,000
116,085
20Y6
$300,000
110,000
44,000
22,000
87,480
The 2017 net income was $30,145, and the 20Y6 net income was $23,020. No dividends on common stock were declare
and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
20Y7
a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equi
20Y6 and 20Y7. When required, round your answers to one decimal place.
%
20Y5
$267,000
110,000
%
44,000
%
22,000
66,000
Return on total assets
Return on stockholders' equity
Return on common stockholders' equity
b. The profitability ratios indicate that the company's profitability has improved
✔ the return on stockholders' equity in both years, there must be positive
less than
20Y6
%
%
%
✓. Since the return on assets is
M
leverage from the use
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