Use this information for Kellman Company to answer the question that follow.The balance sheets at the end of each of the first 2 years of operations indicate the following:Kellman CompanyTotal current assetsTotal investmentsTotal property, plant, and equipmentTotal current liabilitiesTotal long-term liabilitiesPreferred 9% stock, $100 parCommon stock, $10 parPaid-in capital in excess of par-Common stockRetained earningsa. 9.01%b. 11.22%Year 2c. 4.85%d. 7.26%$600,10063,200887,300111,400311,70083,200565,30062,900416,100Year 1Using the balance sheets for Kellman Company, if net income is $112,500 and interest expense is$44,600 for Year 2, what is the return on total assets for the year (rounded to two decimalplaces)?$583,90046,500618,80087,000234,90083,200565,30062,900215,900

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Description: Use this information for Kellman Company to answer the question that follow.The balance sheets at the end of each of the first 2 years of operations indicate the following:Kellman CompanyTotal current assetsTotal investmentsTotal property, plant, an

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Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Year 2 a. 9.01% b. 11.22% c. 4.85% d. 7.26% $600,100 63,200 887,300 111,400 311,700 83,200 565,300 62,900 416,100 Year 1 $583,900 46,500 618,800 87,000 234,900 83,200 565,300 62,900 215,900 Paid-in capital in excess of par-Common stock Retained earnings Using the balance sheets for Kellman Company, if net income is $112,500 and interest expense is $44,600 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?

Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Year 2 a. 9.01% b. 11.22% c. 4.85% d. 7.26% $600,100 63,200 887,300 111,400 311,700 83,200 565,300 62,900 416,100 Year 1 $583,900 46,500 618,800 87,000 234,900 83,200 565,300 62,900 215,900 Paid-in capital in excess of par-Common stock Retained earnings Using the balance sheets for Kellman Company, if net income is $112,500 and interest expense is $44,600 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?

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 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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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.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
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The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment. Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-Common stock Retained earnings Using the balance sheets for Kellman Company, if net income is $250,000 and interest expense is $20,000 for Year 2, and the market price of common shares is $30, what is the price- earnings ratio on common stock for Year 2? (Round intermediate calculation to two decimal places and final answers to one decimal place.) Oa. 13.4 Ob. 12.1 Year 2 Year 1 $600,000 $560,000 60,000 40,000 900,000 700,000 125,000 65,000 350,000 250,000 100,000 100,000 600,000 600,000 75,000 75,000 310,000 210,000 Oc. 8.5 Od. 7.5
The following selected data were taken from the financial statements of the Winter Group for the 3 most recent years of operations: Total assets Notes payable (10% interest) Common stock Preferred $6 stock, $100 par Retained earnings Dec. 31. Year 3 Dec.31, Year 2 Dec. 31, Year 1 $3,000,000 $2,700,000 $2,400,000 1,000,000 1,000,000 1,000,000 400,000 400,000 400,000 200,000 200,000 200,000 1,126,000 896,000 600,000 The Year 3 net income was $262,000, and the Year 2 net income was $348,000. No dividends on common stock were declared during the 3 years. (a) Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for Years 2 and 3. Round to one decimal place. (b) What conclusions can be drawn from these data as to the company's profitability?
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The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $629,337 $589,332 Total investments 60,228 40,363 Total property, plant, and equipment 861,159 681,074 Total current liabilities 102,094 83,445 Total long-term liabilities 323,402 228,617 Preferred 9% stock, $100 par 95,941 95,941 Common stock, $10 par 559,966 559,966 Paid-in capital in excess of par-common stock 66,297 66,297 Retained earnings 403,024 276,503 Using the balance sheets for Kellman Company, if net income is $119,929 and interest expense is $36,940 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Oa. 10.96% Ob. 7.73% Oc. 9.15% Od. 11.29%
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The balance sheet data of Randolph Company for two recent years appears below: Assets: Year 2 Year 1 Current assets $ 440 $280 Plant assets 675 520 Total assets $1,115 $800 Liabilities and stockholders' equity: Current liabilities $ 280 $120 Long-term debt 250 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,115 $800 Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as a base year. Using vertical analysis, prepare a comparative balance sheet. Round percentages to one decimal place.
he balance sheet data of Randolph Company for two recent years appears below: Assets: Year 2 Year 1 Current assets $445 $280 Plant assets 680 520 Total assets $1,125 $800 Liabilities and stockholders' equity: Current liabilities $285 $120 Long-term debt 255 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,125 $800 Required: a. Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as a base year. If required, round percentage to one decimal place. If required, use the minus sign to indicate decreases in amounts and percents (negative values).
The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $612,540 $570,063 Total investments 69,979 41,491 Total property, plant, and equipment 901,201 676,355 Total current liabilities 109,794 82,215 Total long-term liabilities 312,986 227,704 Preferred 9% stock, $100 par 80,829 80,829 Common stock, $10 par 535,444 535,444 Paid-in capital in excess of par-common stock 64,196 64,196 Retained earnings 480,471 297,521 Using the balance sheets for Kellman Company, if net income is $117,455 and interest expense is $31,395 for Year 2, and the market price of common shares is $46, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)?
At the end of the prior annual reporting period, Barnard Corporation's balance sheet showed the following: BARNARD CORPORATION Balance Sheet At December 31, Prior Year Stockholders' equity Contributed capital Common stock (par $10; 5,100 shares) Paid-in capital Total contributed capital Retained earnings Total stockholders' equity $ 51,000 13,000 64,000 49,000 $ 113,000 During the current year, the following selected transactions (summarized) were completed: a. Sold and issued 2,000 shares of common stock at $27 cash per share (at year-end). b. Determined net income, $53,000. c. Declared and paid a cash dividend of $2 per share on the beginning shares outstanding. Required: Prepare a statement of stockholders' equity for the year ended December 31, current year. BARNARD CORPORATION Statement of Stockholders' Equity Common Stock Shares Amount Paid-in Capital Retained Earnings Total Stockholders' Equity Balances as of December 31, prior year Balances as of December 31, current year