Selected financial data from the September 30 year-end statements of GreenCompany are given below:Interest expense on long-term debtP95,000.00ProfitP480,000.00Total AssetsP5,100,000.0012% interest bearing long term debt*P760,000.007% Preference shares, P100 parP900,000.00Total Stockholders' equityP3,200,000.00*This is the only interest bearing liabilityGreen Company has.The Company's tax rate is 25%. Total assets at the beginning of the year wasP4,800,000 and totalstockholders' equity was P2,900,000. There has been no change on the preferenceshares during theyear. Required:A. Compute the return on average totalassets.B. Compute the return on average ordinaryshareholders' equity.

Average total assets refer to the value of assets that are to be recorded at the end of the…

Answered: A. Compute the return on average total…

Business

Accounting

A. Compute the return on average total assets. B. Compute the return on average ordinary shareholders' equity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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