Question

Homework: Chapter 12 Homework Sa 5 of 6 (4 complete) HW Score: 31.02%, 31.02 of 100 Score: 0 of 25 pts E12-23A (similar to) Question Help The comparative income statements and additional data for Rolling Hills Decor, Inc., follow: Click the icon to view the comparative income statements.) (Click the icon to view the additional data.) Read the requirement. Select the formula for each of the following component ratios, then calculate the ratios for 2018 and 2017. (Round ALL of your answers to three decimal places, X.XXX, and do not enter in percentage format. Ignore interest expense in your analysis.) Ratio Formula 2018 2017 ROS AT ROA ROE

Answer 1

Answer is given below

Ratio is given in 3 decimal point as per the requirement

working note is given at bottom

Calculation 2018 2017 Ratio 2018 2017 Ratio Formula ROS Net Income Sales $8,000 $190,000 $20,000 $240,000 0.042 0.083 Net sales Average total Assets $190,000 $285,000 $240,000 $260,000 0.667 0.923 ROA Net Income Average total Assets $8,000 $285,000 $20,000 $260,000 0.028 0.077 Total Average Assets Total Average Equity $285,000 $103,500 $260,000 $102,500 2.754 2.537 Jet Income Total Average Equity $8,000 $103,500 $20,000 $102,500 0.077 0.195

working notes:

Equity Average for 2018 Average for 2017 2018 2017 2016 $300,000 $270,000 $250,000 $285,000 $260,000 Common stockholder equity Average for 2018 Average for 2017 $104,000 $103,000 $102,000 $103,500 $102,500 Net income to common stockholders Net income Preference dividend Net income to common stockholders $23,000 $34,000 $15,000 $14,000 $8,000 $20,000