ACCOUNTING PRINCIPLES 222 5/16 >C<
ACCOUNTING PRINCIPLES 222 5/16 >C<
2nd Edition
ISBN: 9781323461525
Author: Horngren
Publisher: PEARSON C
Question
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Chapter 17, Problem P17.27APGA
To determine

Concept Introduction

Trend Analysis: Trend Analysis or Trend Percentages are used to determine the change in a particular item like sales revenue, net income etc. over a longer period of time. A base year has to be chosen in order to calculate the trend percentages.

Return on Common Stockholders’ Equity: Return on Common Stockholders’ Equity (ROCE) is a financial profitability ratio that measures the ability of a company to generate profits with the money invested by its shareholders. It is calculated by dividing net income available to common stockholders by average common stockholders’ equity for a particular period.

Requirement 1

To Compute:

The trend analyses for each given item that is net sales revenue, net income, and common stockholders’ equity for 2015-2017, using 2014 as the base year.

To determine

Requirement 2

To Compute:

The rate of return on common stockholders’ equity for 2015-2017.

Blurred answer

Chapter 17 Solutions

ACCOUNTING PRINCIPLES 222 5/16 >C<

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