FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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20Υ8
20Y7
20Y6
20Υ5
20Y4
%
b. Return on stockholders equity:
20Y8
20Y7
20Y6
20Υ5
20Υ4
%
C. Times interest earned:
20Y8
20Υ7
20Y6
20Y5
20Y4
d. Ratio of liabilities to stockholders' equity:
econ.docx
SP
P Type here to search
o 耳# 重
6:10.
59°F
10/30/
112
prt sc
%24
వి వ
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Transcribed Image Text:20Υ8 20Y7 20Y6 20Υ5 20Y4 % b. Return on stockholders equity: 20Y8 20Y7 20Y6 20Υ5 20Υ4 % C. Times interest earned: 20Y8 20Υ7 20Y6 20Y5 20Y4 d. Ratio of liabilities to stockholders' equity: econ.docx SP P Type here to search o 耳# 重 6:10. 59°F 10/30/ 112 prt sc %24 వి వ
Addai Company has provided the following comparative information:
20Y8
20Υ7
20Υ6
20Y5
20Y4
Net income
$1,120,400
$965,900
$811,700
$693,800
$588,000
Interest expense
380,900
347,700
300,300
229,000
182,300
Income tax expense
358,528
270,452
227,276
180,388
141,120
Total assets (ending balance)
6,308,280
6,633,962
4,788,646
4,965,740
3,765,686
Total stockholders' equity (ending balance)
2,021,243
2,424,789
1,550,109
1,918,695
1,151,217
Average total assets
6,471,121
5,711,304
4,877,193
4,138,117
3,517,352
Average stockholders' equity
2,223,016
1,987,449
1,734,402
1,534,956
1,342,466
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Υ4+20Υ8
Return on total assets
22.9%
Return on stockholders' equity
47.2%
Times interest earned
4.6
Ratio of liabilities to stockholders' equity
2.1
Required:
1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place:
a. Return on total assets:
econ.docx
P Type here to search
Sh
59 F A @
6:10 A
10/30/2
EGO
144
In
144
prt sc
tab
%24
expand button
Transcribed Image Text:Addai Company has provided the following comparative information: 20Y8 20Υ7 20Υ6 20Y5 20Y4 Net income $1,120,400 $965,900 $811,700 $693,800 $588,000 Interest expense 380,900 347,700 300,300 229,000 182,300 Income tax expense 358,528 270,452 227,276 180,388 141,120 Total assets (ending balance) 6,308,280 6,633,962 4,788,646 4,965,740 3,765,686 Total stockholders' equity (ending balance) 2,021,243 2,424,789 1,550,109 1,918,695 1,151,217 Average total assets 6,471,121 5,711,304 4,877,193 4,138,117 3,517,352 Average stockholders' equity 2,223,016 1,987,449 1,734,402 1,534,956 1,342,466 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Υ4+20Υ8 Return on total assets 22.9% Return on stockholders' equity 47.2% Times interest earned 4.6 Ratio of liabilities to stockholders' equity 2.1 Required: 1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place: a. Return on total assets: econ.docx P Type here to search Sh 59 F A @ 6:10 A 10/30/2 EGO 144 In 144 prt sc tab %24
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