A. Compute the return on average total assets. B. Compute the return on average ordinary shareholders' equity.
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- View Policies Current Attempt in Progress Using the following balance sheet and income statement data, what is the debt to assets ratio? Current assets $31500 Net income $41100 Stockholders' Current liabilities 15400 79400 equity Average assets 162500 Total liabilities 42300 Total assets 114000 Average common shares outstanding was 15500. 37 percent O 70 percent O 15 percent O 28 percent Attempts: 0 of 1 used Save for LaterThe financial statements of Friendly Fashions include the following selected data (in millions):($ in millions) 2021 2020Sales $ 10,043 $ 11,134Net income $ 312 $ 818Stockholders’ equity $ 1,850 $ 2,310Average shares outstanding (in millions) 675 –Dividends per share $ 0.31 –Stock price $ 6.20 –Required:1. Calculate the return on equity in 2021.2. Calculate the dividend yield in 2021.3. Calculate earnings per share in 2021.4. Calculate the price-earnings ratio in 2021.Reference is made to the 2022 Balance Sheet of Tran-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000,00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: 1. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. iii. iv. V. Preferred shares have a book value of $100 per share. These shares are currently selling at $120 per share and pays dividends of 6% per annum on book value. The dividend growth rate is expected to be 3%, and dividend for 2823 is projected to be $5.00 per share. The…
- The comparative balance sheets for Metlock Corporation show the following information. December 312020 2019Cash $33,500 $12,900Accounts receivable 12,400 10,000Inventory 12,100 9,000Available-for-sale debt investments –0– 3,000Buildings –0– 29,800Equipment 44,800 19,900Patents 5,000 6,300 $107,800 $90,900Allowance for doubtful accounts $3,100 $4,500Accumulated depreciation—equipment 2,000 4,500Accumulated depreciation—building –0– 6,000Accounts payable 5,000 3,000Dividends payable –0– 4,900Notes payable, short-term (nontrade) 3,000 4,100Long-term notes payable 31,000 25,000Common stock 43,000 33,000Retained earnings 20,700 5,900 $107,800 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.2. $10,000 of the long-term note payable was paid by issuing common stock.3. Cash dividends paid were $4,900.4. On January…The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…given the following data for the cheyenne company: current liabilities 602; long-term debt 630; common stock 858; retained earnings 1210; total liabilities & stockholders' equity 3300. how would common stock apprear on a common size balance sheet?
- The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $300,000 $270,000 $240,000 Notes payable (8% interest) 100,000 100,000 100,000 Common stock 40,000 40,000 40,000 Preferred 3% stock, $100 par 20,000 20,000 20,000 (no change during year) Retained earnings 103,900 77,450 60,000 The 20Y7 net income was $27,050, and the 20Y6 net income was $18,050. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill in the blank 3 %…The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 Total assets Notes payable (8% interest) Common stock Preferred 5% stock, $100 par (no change during year) Retained earnings 20Y7 $209,000 70,000 28,000 14,000 Return on total assets debt. 20Y6 72,140 The 20Y7 net income was $20,790, and the 20Y6 net income was $10,750. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. 20Y7 $188,000 70,000 28,000 14,000 0.25 52,050 a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that the company's profitability has X % % 20Y5 % $167,000 70,000 28,000 14,000 42,000 the return on…P13-40A (similar to) Thurman Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2018: E (Click the icon to view the partial balance sheet.) Repde Data Table - X Re utstar Requirements Th Stockholders' Equity 1. Paid-In Capital: Identify the different classes of stock that Thurman Comfort Specialists has outstanding. What is the par value per share of Thurman Comfort Specialists' preferred stock? 2. Preferred Stock-5%, ? Par Value; 650,000 shares authorized, 375,000 shares issued and outstanding $ 1,500,000 3. Make two summary journal entries to record issuance of all the Thurman Comfort Specialists' stock for cash. Explanations are not required. Common Stock-$1 Par Value; 7,000,000 shares 4. No preferred dividends are in arrears. Journalize the declaration of a authorized, 1,330,000 shares issued and outstanding $300,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable…
- are given the following information about Jordan plc:Financial position statement at January 2017£000 £000Non-current assets 1,511Current assets 672Total assets 2,183Equity financeOrdinary shares (50p) 200Reserves 150Non-current liabilities7% preference shares 3009% bonds (redeemable after 8 years) 6509% bank notes 560Current liabilities 323Total liabilities 2183You are also given the following information:• Yield on Treasury bills 7%• Jordan plc equity beta 1.21• Equity risk premium 9.1%• Current ex-div ordinary share price £2.35• Current ex-div preference share price 66p• Current ex-interest bond price £105• Corporate tax rate 30%Required:(a). calculate the company’s weighted average cost of capital (WACC) using market weightings.(b). critically discuss whether you consider that companies, by integrating a sensible level of gearinginto their capital structure, can minimise their weighted average cost of capital.The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous YearAccounts payable $ 924,000 $ 800,000Current maturities of serial bonds payable 200,000 200,000Serial bonds payable, 10% 1,000,000 1,200,000Common stock, $10 par value 250,000 250,000Paid-in capital in excess of par 1,250,000 1,250,000Retained earnings 860,000 500,000The income before income tax was $480,000 and $420,000 for the current and previous years, respectively.a. Determine the ratio of liabilities to stockholders’ equity at the end of each year. Round to one decimal place.b. Determine the times interest earned ratio for both years.…The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $289,000 $260,000 $231,000 Notes payable (8% interest) 100,000 100,000 100,000 Common stock 40,000 40,000 40,000 Preferred 6% stock, $100 par 20,000 20,000 20,000 (no change during year) Retained earnings 118,925 80,715 60,000 The 20Y7 net income was $39,410, and the 20Y6 net income was $21,915. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the rate earned on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets % % Return on stockholders’ equity % % Return on common stockholders’ equity %…