Bundle: Accounting, Loose-Leaf Version, 26th + LMS Integrated for CengageNOW, 2 terms Printed Access Card
26th Edition
ISBN: 9781305715967
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 17, Problem 17.17EX
Profitability ratios
The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014:
The 2016 net income was $372,000, and the 2015 net income was $492,000. No dividends on common stock were declared between 2014 and 2016.
a. Determine the rate earned on total assets, the rate earned on stockholders’ equity, and the rate earned on common stockholders’ equity for the years 2015 and 2016. Round to one decimal place.
b. What conclusions can be drawn from these data as to the company’s profitability?
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Profitability ratiosThe following selected data were taken from the financial statements ofVidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
The 20Y7 net income was $411,000, and the 20Y6 net income was$462,500. No dividends on common stock were declared between 2045and 2017. Preferred dividends were declared and paid in full in 2016 and2017.a. Determine the return on total assets, the return tin stockholders'equity, and the return on common stockholders' equity for the years2016 and 2017. Round percentages to one decimal place.b. What conclusions can be drawn from these data as to the company'sprofitability?
Profitability ratios
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 20Y6, and 20Y5:
December 31
20Y7
December 31
20Y6
December 31
20Y5
Total assets
$307,000
$277,000
$247,000
Notes payable (8% interest)
100,000
100,000
100,000
Common stock
40,000
40,000
40,000
Preferred 6% stock, $100 par
(no change during year)
Retained earnings
20,000
109,920
20,000
80,240
20,000
60,000
The 20Y7 net income was $30,880, and the 2016 net income was $21,440. No dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 and 2017.
a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When required, round your answers to one decimal place.
20Y7
20Y6
Return on total assets
Return on stockholders' equity
Return on common stockholders' equity
%
%
%
%
%
%
b. The profitability ratios indicate…
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Chapter 17 Solutions
Bundle: Accounting, Loose-Leaf Version, 26th + LMS Integrated for CengageNOW, 2 terms Printed Access Card
Ch. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - How would the current and quick ratios of a...Ch. 17 - a. Why is it advantageous to have a high inventory...Ch. 17 - What do the following data, taken from a...Ch. 17 - a. How does the rate earned on total assets differ...Ch. 17 - Kroger, a grocery store, recently had a...Ch. 17 - Prob. 9DQCh. 17 - Prob. 10DQ
Ch. 17 - Horizontal analysis The comparative temporary...Ch. 17 - Prob. 17.1BPECh. 17 - Vertical analysis Income statement information for...Ch. 17 - Vertical analysis Income statement information for...Ch. 17 - Prob. 17.3APECh. 17 - Prob. 17.3BPECh. 17 - Accounts receivable analysis A company reports the...Ch. 17 - Accounts receivable analysis A company reports the...Ch. 17 - Inventory analysis A company reports the...Ch. 17 - Inventory analysis A company reports the...Ch. 17 - Prob. 17.6APECh. 17 - Prob. 17.6BPECh. 17 - Times interest earned A company reports the...Ch. 17 - Times interest earned A company reports the...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Return on total assets A company reports the...Ch. 17 - Return on total assets A company reports the...Ch. 17 - Common stockholders profitability analysis A...Ch. 17 - Common stockholders profitability analysis A...Ch. 17 - Prob. 17.11APECh. 17 - Prob. 17.11BPECh. 17 - Prob. 17.1EXCh. 17 - Vertical analysis of income statement The...Ch. 17 - Common-sized income statement Revenue and expense...Ch. 17 - Vertical analysis of balance sheet Balance sheet...Ch. 17 - Prob. 17.5EXCh. 17 - Prob. 17.6EXCh. 17 - Prob. 17.7EXCh. 17 - Prob. 17.8EXCh. 17 - Accounts receivable analysis The following data...Ch. 17 - Accounts receivable analysis Xavier Scores Company...Ch. 17 - Inventory analysis The following data were...Ch. 17 - Prob. 17.12EXCh. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Prob. 17.16EXCh. 17 - Profitability ratios The following selected data...Ch. 17 - Profitability ratios Ralph Lauren Corporation...Ch. 17 - Six measures of solvency or profitability The...Ch. 17 - Six measures of solvency or profitability The...Ch. 17 - Prob. 17.21EXCh. 17 - Prob. 17.22EXCh. 17 - Earnings per share, discontinued operations The...Ch. 17 - Prob. 17.24EXCh. 17 - Prob. 17.25EXCh. 17 - Prob. 17.26EXCh. 17 - Horizontal analysis of income statement For 2016,...Ch. 17 - Prob. 17.2APRCh. 17 - Prob. 17.3APRCh. 17 - Nineteen measures of solvency and profitability...Ch. 17 - Prob. 17.5APRCh. 17 - Prob. 17.1BPRCh. 17 - Prob. 17.2BPRCh. 17 - Effect of transactions on current position...Ch. 17 - Nineteen measures of solvency and profitability...Ch. 17 - Solvency and profitability trend analysis Crosby...Ch. 17 - Nike, Inc., Problem Financial Statement Analysis...Ch. 17 - Prob. 17.1CPCh. 17 - Prob. 17.2CPCh. 17 - Vertical analysis The condensed income statements...Ch. 17 - Prob. 17.4CPCh. 17 - Comprehensive profitability and solvency analysis...
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