Is it 10.0%Homework Answers
Correct answer------------Return on equity = 9.8%
Working
Average equity will be taken instead of equity of Year 2021
Average equity = (Equity of 2020+ Equity of 2021) Divided by 2.
Average equity = (260000+250000)2=$255,000
| Return on Equity | ||||||
| Numerator | / | denominator | = | Return on Equity | ||
| Net income | / | Average Stockholder's equity | = | Return on Equity | ||
| 2021 | $ 25,000.00 | / | $ 2,55,000.00 | = | 9.8% | |
Add Answer to:
Is it 10.0%
Missoula Inc. reported the following selected financial statement data: Cash Accounts receivable (net)...
Missoula Inc. reported the following selected financial statement data: Dec 31, 2020 Dec 31, 2021 Cash...
Missoula Inc. reported the following selected financial statement data: Dec 31, 2020 Dec 31, 2021 Cash $ 30,000 $ 32,000 Accounts receivable (net) 48,000 52,000 Inventory 68,000 72,000 Plant assets (net) 210,000 218,000 Total assets 405,000 395,000 Liabilities 145,000 145,000 Shareholders' equity 260,000 250,000 Net sales 340,000 400,000 Cost of goods sold 220,000 280,000 Net income 20,000 25,000 Required: Compute the asset turnover ratio for 2021.
Missoula Inc. reported the following selected financial statement data: Dec 31, 2020 Dec 31,...
Missoula Inc. reported the following selected financial statement data: Dec 31, 2020 Dec 31, 2021 Cash $ 30,000 $ 32,000 Accounts receivable (net) 48,000 52,000 Inventory 68,000 72,000 Plant assets (net) 210,000 218,000 Total assets 405,000 395,000 Liabilities 145,000 145,000 Shareholders' equity 260,000 250,000 Net...
37. Under what circumstances can revenue on long-term construction contracts be recognized over time according to...
37. Under what circumstances can revenue on long-term construction contracts be recognized over time according to percentage of completion? Missoula Inc. reported the following selected financial statement data: Dec 31, 2017 Dec 31, 2018 Cash $ 30,000 $ 32,000 Accounts receivable (net) 48,000 52,000 Inventory 68,000 72,000 Plant assets (net) 210,000 218,000 Total assets 405,000 395,000 Liabilities 145,000 145,000 Shareholders' equity 260,000 250,000 Net sales 340,000 400,000 Cost of goods sold 220,000 280,000 Net income 20,000 25,000 Required: Compute the...
Missoula Inc. reported the following selected financial statement data: Cash Accounts receivable (net) Inventory Plant assets...
Missoula Inc. reported the following selected financial statement data: Cash Accounts receivable (net) Inventory Plant assets (net) Total assets Liabilities Shareholders' equity Net sales Cost of goods sold Net income Dec 31, 2020 $ 36,000 54,000 74,000 216,000 423,000 151.000 272,000 346,000 401,000 26,000 Dec 31, 2021 $ 41,000 64,000 78,000 230,000 407,000 151,000 256,000 418,000 456,000 37,000 -53.12 Required: Compute the asset turnover ratio for 2021. Asset turnover ratio
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 24,000 170,000 360,000 8,000 Total current assets Property and equipment, net 562,000 810,000 Total assets $1,372,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9% $ 250,000 320,000 570,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings $ 120,000 682,000 Total stockholders' equity 802,000 Total liabilities and...
The following selected data were taken from the financial statements of Vidahill Inc. for December 31,...
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 $233,000 $210,000 $187,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 7% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 80,620 58,730 48,000 The 20Y7 net income was $23,010, and the 20Y6 net income was $11,850. No dividends on common stock were declared between...
Ending Balance Joel de Paris, Inc. Balance Sheet Beginning Balance Assets Cash $ 140,000 Accounts receivable 450,000 I...
Ending Balance Joel de Paris, Inc. Balance Sheet Beginning Balance Assets Cash $ 140,000 Accounts receivable 450,000 Inventory 320,000 Plant and equipment, net 680,000 Investment in Buisson, S.A. 250,000 Land (undeveloped) 180,000 Total assets $2,020,000 Liabilities and Stockholders' Equity Accounts payable $ 360,000 Long-term debt 1,500,000 Stockholders' equity 160,000 Total liabilities and stockholders' $2,020,000 equity $ 120,000 530,000 380,000 620,000 280,000 170,000 $2,100,000 $ 310,000 1,500,000 290,000 $2,100,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 2015 Total assets $244,000 $220,000 $196,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 83,360 59,840 48,000 The 2017 net income was $24,480, and the 2016 net income was $12,800. No dividends on common stock were...
Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 20,000 Accounts receivable, net...
Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 20,000 Accounts receivable, net 160,000 Merchandise inventory 380,000 Prepaid expenses 11,000 Total current assets 571,000 Property and equipment, net 870,000 Total assets $1,441,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 210,000 Bonds payable, 9 300,000 Total liabilities 510,000 Stockholders' equity Common stock, $5 per value $ 180,000 Retained earnings 751,000 Total stockholders' equity 931,000 Total liabilities and stockholders' equity $1,441,000 Castile Products, Inc. Income Statement For the...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses S 21,000 220,000 300,000 11,000 Total current assets Property and equipment, net 552,000 900,000 Total assets $1,452,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9 % $230,000 350,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 580,000 $110,000 762,000 Total stockholders' equity 872,000 Total liabilities and stockholders'...
Missoula Inc. reported the following selected financial statement data: Cash Accounts receivable (net) Inventory Plant assets (net) Total assets Liabilities Shareholders' equity Net sales Cost of goods sold Net income Dec 31, 2020 $ 36,000 54,000 74,000 216,000 423,000 151.000 272,000 346,000 401,000 26,000 Dec 31, 2021 $ 41,000 64,000 78,000 230,000 407,000 151,000 256,000 418,000 456,000 37,000 -53.12 Required: Compute the asset turnover ratio for 2021. Asset turnover ratio
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 24,000 170,000 360,000 8,000 Total current assets Property and equipment, net 562,000 810,000 Total assets $1,372,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9% $ 250,000 320,000 570,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings $ 120,000 682,000 Total stockholders' equity 802,000 Total liabilities and...
Ending Balance Joel de Paris, Inc. Balance Sheet Beginning Balance Assets Cash $ 140,000 Accounts receivable 450,000 Inventory 320,000 Plant and equipment, net 680,000 Investment in Buisson, S.A. 250,000 Land (undeveloped) 180,000 Total assets $2,020,000 Liabilities and Stockholders' Equity Accounts payable $ 360,000 Long-term debt 1,500,000 Stockholders' equity 160,000 Total liabilities and stockholders' $2,020,000 equity $ 120,000 530,000 380,000 620,000 280,000 170,000 $2,100,000 $ 310,000 1,500,000 290,000 $2,100,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 2015 Total assets $244,000 $220,000 $196,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 83,360 59,840 48,000 The 2017 net income was $24,480, and the 2016 net income was $12,800. No dividends on common stock were...
Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 20,000 Accounts receivable, net 160,000 Merchandise inventory 380,000 Prepaid expenses 11,000 Total current assets 571,000 Property and equipment, net 870,000 Total assets $1,441,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 210,000 Bonds payable, 9 300,000 Total liabilities 510,000 Stockholders' equity Common stock, $5 per value $ 180,000 Retained earnings 751,000 Total stockholders' equity 931,000 Total liabilities and stockholders' equity $1,441,000 Castile Products, Inc. Income Statement For the...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses S 21,000 220,000 300,000 11,000 Total current assets Property and equipment, net 552,000 900,000 Total assets $1,452,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9 % $230,000 350,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 580,000 $110,000 762,000 Total stockholders' equity 872,000 Total liabilities and stockholders'...
Most questions answered within 3 hours.
-
Peabody, Inc., sells fireworks. The company’s marketing director
developed the following cost of goods sold budget...
asked 34 seconds ago -
1. The correlation coefficient determined for two variables has
a value of 0.89. Describe, in words,...
asked 5 minutes ago -
The following data relate to direct materials costs for
November:
Actual costs
4,700 pounds at $5.35...
asked 4 minutes ago -
Kyle, a 95.0 kg football player, leaps straight up into the air
(with no horizontal velocity)...
asked 27 minutes ago -
Which of the following is a measure of profitability?
A.
Quick (acid-test) ratio
B.
Net sales...
asked 30 minutes ago -
Find the total pressure exerted by 2 grams of ethane and 3 grams
of CO2 contained...
asked 31 minutes ago -
A fireman standing on a 5.2 m high ladder operates a water hose
with a round...
asked 28 minutes ago -
A cream formulation is studied for accelerated stability study.
Creaming was observed when formulation was tested...
asked 31 minutes ago -
A 1,150 lumen light bulb is placed 37 cm in front of a mirrored
wall, whose...
asked 41 minutes ago -
Given that z is a standard normal random variable, compute the
following probabilities (to 4 decimals)....
asked 47 minutes ago -
You begin preparation of the calibration curve to measure
absorbance vs concentration of FeSCN2+. To do...
asked 1 hour ago -
When you speak after breathing helium, in which the speed of
sound is much greater than...
asked 57 minutes ago