Selected financial data from the June 30 year-end statements of Safford Company are given below: Total...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $ 5,400,000 Long-term debt (10% interest rate) $ 680,000 Total stockholders’ equity $ 3,100,000 Interest paid on long-term debt $ 68,000 Net income $ 470,000 Total assets at the beginning of the year were $5,200,000; total stockholders’ equity was $2,900,000. The company’s tax rate is 35%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 2. Compute the return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 3. Is financial leverage positive or negative?
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Selected financial data from the June 30 year-end statements of
Safford Company are given below: Total...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets Long-term debt (10% interest rate) Total stockholders' equity Interest paid on long-term debt Net income $5,300,000 $ 660,000 $2,500,000 $ 66,000 $ 440,000 Total assets at the beginning of the year were $5,100,000; total stockholders' equity was $2,300,000. The company's tax rate is 30%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $ 3,600,000 Long-term debt (12% interest rate) $ 500,000 Total stockholders’ equity $ 2,400,000 Interest paid on long-term debt $ 60,000 Net income $ 280,000 Total assets at the beginning of the year were $3,000,000; total stockholders’ equity was $2,200,000. The company’s tax rate is 30%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e.,...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $ 5,300,000 Long-term debt (10% interest rate) $ 750,000 Total stockholders’ equity $ 2,800,000 Interest paid on long-term debt $ 75,000 Net income $ 460,000 Total assets at the beginning of the year were $5,100,000; total stockholders’ equity was $2,600,000. The company’s tax rate is 30%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e.,...
please help asap thank you!!! Selected financial data from the June 30 year-end statements of Safford...
please help asap thank you!!!
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets Long-term debt (12% interest rate) Total stockholders' equity Interest paid on long-term debt $5,700,000 $ 650,000 $2,600,000 $ 78,000 $ 440,000 Total assets at the beginning of the year were $5,500,000; total stockholders' equity was $2,400,000. The company's tax rate is 35%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place...
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'...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 840,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at 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 $ 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% $ 230,000 350,000 580,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings e $ 110,000 762,000 Total stockholders' equity Total liabilities and...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at 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 $ 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...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
Comparative financial statements for Weller Corporation, a
merchandising company, for the year ending December 31 appear
below. The company did not issue any new common stock during the
year. A total of 910,000 shares of common stock were outstanding.
The interest rate on the bond payable was 12%, the income tax rate
was 40%, and the dividend per share of common stock was $0.75 last
year and $0.40 this year. The market value of the company’s common
stock at the...
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets Long-term debt (10% interest rate) Total stockholders' equity Interest paid on long-term debt Net income $5,300,000 $ 660,000 $2,500,000 $ 66,000 $ 440,000 Total assets at the beginning of the year were $5,100,000; total stockholders' equity was $2,300,000. The company's tax rate is 30%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should...
please help asap thank you!!!
Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets Long-term debt (12% interest rate) Total stockholders' equity Interest paid on long-term debt $5,700,000 $ 650,000 $2,600,000 $ 78,000 $ 440,000 Total assets at the beginning of the year were $5,500,000; total stockholders' equity was $2,400,000. The company's tax rate is 35%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place...
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'...
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 $ 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% $ 230,000 350,000 580,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings e $ 110,000 762,000 Total stockholders' equity Total liabilities and...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at 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 $ 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...
Comparative financial statements for Weller Corporation, a
merchandising company, for the year ending December 31 appear
below. The company did not issue any new common stock during the
year. A total of 910,000 shares of common stock were outstanding.
The interest rate on the bond payable was 12%, the income tax rate
was 40%, and the dividend per share of common stock was $0.75 last
year and $0.40 this year. The market value of the company’s common
stock at the...
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