Question

Balance sheets - X Henderson's Comparative Balance Sheets December 31, 2014 and 2013 (amounts in thousands) 2014 2013 Assets Current assets: Cash $ 1,200,000 $ 808,000 Short-term investments 208,000 262,000 Accounts receivable 100,200 396,100 Inventory 4,610,000 4,100,000 Other current assets 504,000 407,500 Total current assets $ 6,622,200 $ 5,973,600 Other non-current assets 12,800,000 11,690,000 Total assets $ 19,422,200 $ 17,663,600 Print Done

Answer 1

Answer c. Formula to calculate rate of return on common et stack holders equity Net nicome - Preference dividend Average common equity 0 19, 229, 520 10,219,900 188.2% Rate of return on net sales is 44.4% is 44.4% which depicte that company earns margin of 44.4 from net sales. Rate of return on total assete ů 115.9% which depicte how effectively management utilize assete utilize assets to generate a reasonable return for a businey. Rate of retwin cornmom stock holders equity ý 188.2 %. which depicte Financial performance of comparty. All these returns are gruning favorable returns and thug it can be said that These rates of return appear to be strong