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During a recent period, the fast-food chain Wendy's International purchased many treasury shares. This caused the number of shares outstanding to fall from 124 million to 105 million. The following information was drawn from the company's financial statements (in millions). Information for the Year After Purchase of Treasury Stock Information for the Year Before Purchase of Treasury Stock Net income Total assets Average total assets $193.6 $123.4 2,076.0 1,837.9 2,016.9 1,889.8 Total common stockholders' equity 1,029.8 1,068.1 Average common stockholders' equity 1,078.0 1,126.2 Total liabilities 1,046.3 769.9 Average total liabilities 939.0 763.7 Interest expense 30.2 19.8 Income taxes 113.7 84.3 Cash provided by operations 305.2 233.8 Cash dividends paid on common stock 26.8 31.0 Preferred stock dividends 0 0 Average number of common shares outstanding 109.7 119.9 Use the information provided to answer the following questions. (a1) Compute earnings per share, return on common stockholders' equity, and return on assets for both years. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal place, e.g. 15.2%.) Earnings per share Return on common stockholders' equity Return on assets Year Ended After Purchase of Before Purchase of Treasury Stock Treasury Stock $ $ % % % %

During a recent period, the fast-food chain Wendy's International purchased many treasury shares. This caused the number of shares outstanding to fall from 124 million to 105 million. The following information was drawn from the company's financial statements (in millions). Information for the Year After Purchase of Treasury Stock Information for the Year Before Purchase of Treasury Stock Net income Total assets Average total assets $193.6 $123.4 2,076.0 1,837.9 2,016.9 1,889.8 Total common stockholders' equity 1,029.8 1,068.1 Average common stockholders' equity 1,078.0 1,126.2 Total liabilities 1,046.3 769.9 Average total liabilities 939.0 763.7 Interest expense 30.2 19.8 Income taxes 113.7 84.3 Cash provided by operations 305.2 233.8 Cash dividends paid on common stock 26.8 31.0 Preferred stock dividends 0 0 Average number of common shares outstanding 109.7 119.9 Use the information provided to answer the following questions. (a1) Compute earnings per share, return on common stockholders' equity, and return on assets for both years. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal place, e.g. 15.2%.) Earnings per share Return on common stockholders' equity Return on assets Year Ended After Purchase of Before Purchase of Treasury Stock Treasury Stock $ $ % % % %

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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During a recent period, the fast-food chain Wendy's International purchased many treasury shares. This caused the number of shares outstanding to fall from 124 million to 105 million. The following information was drawn from the company's financial statements (in millions). Year After Purchase of Treasury Stock Net income Total assets Average total assets $193.6 Information for the Information for the Year Before Purchase of Treasury Stock $123.4 2,076.0 1,837.9 2,016.9 1,889.8 Total common stockholders' equity 1,029.8 1,068.1 Average common stockholders' equity 1,078.0 1,126.2 Total liabilities 1,046.3 769.9 Average total liabilities 939.0 763.7 Interest expense 30.2 19.8 Income taxes 113.7 84.3 Cash provided by operations 305.2 233.8 Cash dividends paid on common stock 26.8 31.0 Preferred stock dividends 0 0 Average number of common shares outstanding 109.7 119.9 Use the information provided to answer the following questions. (a1) Compute earnings per share, return on common stockholders' equity, and return on assets for both years. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal place, e.g. 15.2%.) Earnings per share Return on common stockholders' equity Return on assets eTextbook and Media Year Ended After Purchase of Treasury Stock Before Purchase of Treasury Stock % % % %
Transcribed Image Text:During a recent period, the fast-food chain Wendy's International purchased many treasury shares. This caused the number of shares outstanding to fall from 124 million to 105 million. The following information was drawn from the company's financial statements (in millions). Year After Purchase of Treasury Stock Net income Total assets Average total assets $193.6 Information for the Information for the Year Before Purchase of Treasury Stock $123.4 2,076.0 1,837.9 2,016.9 1,889.8 Total common stockholders' equity 1,029.8 1,068.1 Average common stockholders' equity 1,078.0 1,126.2 Total liabilities 1,046.3 769.9 Average total liabilities 939.0 763.7 Interest expense 30.2 19.8 Income taxes 113.7 84.3 Cash provided by operations 305.2 233.8 Cash dividends paid on common stock 26.8 31.0 Preferred stock dividends 0 0 Average number of common shares outstanding 109.7 119.9 Use the information provided to answer the following questions. (a1) Compute earnings per share, return on common stockholders' equity, and return on assets for both years. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal place, e.g. 15.2%.) Earnings per share Return on common stockholders' equity Return on assets eTextbook and Media Year Ended After Purchase of Treasury Stock Before Purchase of Treasury Stock % % % %
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