Concord Company manufactures backpacks. During 2017, Concord issued bonds at 12% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Concord Company for the years 2017 and 2016. 2017 2016 Sales revenue $17,100,000 $17,100,000 Net income 4,256,000 4,750,000 Interest expense 1,400,000 392,000 Tax expense 1,273,000 1,425,000 Dividends paid on common stock 2,492,000 2,872,800 Dividends paid on preferred stock 840,000 840,000 Total assets (year-end) 27,550,000 32,062,500 Average total assets 43,925,000 49,736,400 Total liabilities (year-end) 16,800,000 8,400,000 Avg. total common stockholders' equity 26,320,000 39,480,000 (a) Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, e.g. 12.5%.) 2017 2016 (1) Return on assets % % (2) Return on common stockholders' equity % % (3) Payout ratio % % (4) Debt to assets ratio % %

Concord Company manufactures backpacks. During 2017, Concord issued bonds at 12% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Concord Company for the years 2017 and 2016. 2017 2016 Sales revenue $17,100,000 $17,100,000 Net income 4,256,000 4,750,000 Interest expense 1,400,000 392,000 Tax expense 1,273,000 1,425,000 Dividends paid on common stock 2,492,000 2,872,800 Dividends paid on preferred stock 840,000 840,000 Total assets (year-end) 27,550,000 32,062,500 Average total assets 43,925,000 49,736,400 Total liabilities (year-end) 16,800,000 8,400,000 Avg. total common stockholders' equity 26,320,000 39,480,000 (a) Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, e.g. 12.5%.) 2017 2016 (1) Return on assets % % (2) Return on common stockholders' equity % % (3) Payout ratio % % (4) Debt to assets ratio % %

Name: Concord Company manufactures backpacks. During 2017, Concord issued b
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Description: Concord Company manufactures backpacks. During 2017, Concord issued bonds at 12% interest and used the cash proceeds to purchase treasury stock. The followingfinancial information is available for Concord Company for the years 2017 and 2016.20172016

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 6PB

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