I am struggling to answer the last two questions of my assignment.-What is the return on Stockholders' Equity for 2021-What is the return on Common Equity for 2021What information is needed to answer those two questions? Thank you. ADEFH7XYZ Co.8Statement of Stockholders' Equity9For the year ending December 31, 202110Paid-inPaid-InPaid-InCapital -PreferedCommonPreferredCapital -RetainedTreasuryCapital -11StockStockCommonEarningsStockTreasury12 Balances, Jan 1, 2021$ 1,400,000 $ 960,000 $ 586,800 $90,000 $ 10,409,433 $13 Issued Common Stock300,000150,00014 Issued Preferred Stock320,00080,00015 Dividends Paid - Common(50,000)16 Dividends Paid - Preferred(40,000)17 Purchase of Treasury Stock(264,000)18 Sale of Treasury Stock85,80013,00019 Net Income395,25520 Balances, Dec 31, 2021$ 1,700,000 $ 1,280,000 $ 736,800 $170,000 $ 10,714,688 | $ (178,200)| $13,00021use formulas to compute totals here!2223 Additional Questions - enter formulas to compute24 What is XYZ's return on stockholders' equity for 2021?25 What is XYZ's return on common equity for 2021?Journal Entry dataJournalAdjusting JE data & JournalTrial Balances WorksheetMulti-Step Income StmtStmt of...

Return on equity (ROE) refers to a ratio which shows the relationship between net income and…

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Business

Accounting

-What is the return on Stockholders' Equity for 2021 -What is the return on Common Equity for 2021

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

I am struggling to answer the last two questions of my assignment.

-What is the return on Stockholders' Equity for 2021

-What is the return on Common Equity for 2021

What information is needed to answer those two questions? Thank you.

A
D
E
F
H
7
XYZ Co.
8
Statement of Stockholders' Equity
9
For the year ending December 31, 2021
10
Paid-in
Paid-In
Paid-In
Capital -
Prefered
Common
Preferred
Capital -
Retained
Treasury
Capital -
11
Stock
Stock
Common
Earnings
Stock
Treasury
12 Balances, Jan 1, 2021
$ 1,400,000 $ 960,000 $ 586,800 $
90,000 $ 10,409,433 $
13 Issued Common Stock
300,000
150,000
14 Issued Preferred Stock
320,000
80,000
15 Dividends Paid - Common
(50,000)
16 Dividends Paid - Preferred
(40,000)
17 Purchase of Treasury Stock
(264,000)
18 Sale of Treasury Stock
85,800
13,000
19 Net Income
395,255
20 Balances, Dec 31, 2021
$ 1,700,000 $ 1,280,000 $ 736,800 $
170,000 $ 10,714,688 | $ (178,200)| $
13,000
21
use formulas to compute totals here!
22
23 Additional Questions - enter formulas to compute
24 What is XYZ's return on stockholders' equity for 2021?
25 What is XYZ's return on common equity for 2021?
Journal Entry data
Journal
Adjusting JE data & Journal
Trial Balances Worksheet
Multi-Step Income Stmt
Stmt of
...

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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