Question

I need help with this question and specifically how to calculate.

Cappuccino, Inc. Four-Year Selected Financial Data Years Ended January 31, 2017-2014 2017 2016 13,841 $ 13,675 $ 9,700 8,600 70 1,454 98 261 (13) 875 - 76 73 2014 9,057 5,314 104 Operating Results: Net Sales Cost of Goods Sold Interest Expense Income from Operations Income Tax Expense Net Income (Net Loss) Cash Dividends 49 2015 11,631 $ 6,771 48 1,815 333 1,121 75 1,334 241 821 74 Financial Position: 1,682 7,594 1.42:1 Merchandise Inventory Total Assets Current Ratio Stockholders' Equity Average Number of Shares of Common Stock Outstanding 1,900 7,011 0.90:1 2,922 1,470 5,187 1.28:1 2,626 1,048 3,969 1.14:1 1,590 3,004 852 886 894 578

Answer 1

Avg. common stockholders' equity = (beginning stockholders' equity + ending stockholders' equity) / 2 Avg. common stockholders' equity (2017) = (2922 + 3004) / 2 = Avg. common stockholders' equity (2016) = (2626 + 2922) / 2 = 2$ 2,963 2,774 Avg. common stockholders' equity (2015) = (1590 + 2626) / 2 = 2,108 (NI-Preferred dividends) Avg. common stockholders' equity ROE 2,963 2$ -0.4% 2017 -13 2,774 31.5% 2016 875 1,121 / $ 2,108 53.2% 2$ 2015

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