ompute the 2022 return on assets and the return on common stockholders' equity for both companies. (Round answers to 1 ecimal place, e.g. 12.1%.) Return on assets Return on common stockholders' equity Oriole Company I % % Pharoah Company 82.8 %

Cornerstones of Financial Accounting
4th Edition
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Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 74E
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Here are comparative financial statement data for Oriole Company and Pharoah Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Compute the 2022 return assets and the return on common stockholders' equity for both companies.

Your answer is partially correct.
Compute the 2022 return on assets and the return on common stockholders' equity for both companies. (Round answers to 1
decimal place, e.g. 12.1%.)
Return on assets
Return on common stockholders' equity
Oriole Company
|
%
se
%
Pharoah Company
82.8
%
se
%
Transcribed Image Text:Your answer is partially correct. Compute the 2022 return on assets and the return on common stockholders' equity for both companies. (Round answers to 1 decimal place, e.g. 12.1%.) Return on assets Return on common stockholders' equity Oriole Company | % se % Pharoah Company 82.8 % se %
Here are comparative financial statement data for Oriole Company and Pharoah Company, two competitors. All data are as of
December 31, 2022, and December 31, 2021.
Net sales
Cost of goods sold
Operating expenses
Interest expense
Income tax expense
Current assets
Plant assets (net)
Current liabilities
Long-term liabilities
Common stock, $10 par
Retained earnings
Oriole Company
2022
$1,908,000
999,792
257,580
7,632
55,332
327,500 $314,800
520,800
64,800
108,000
504,500
2021
171,000
498,500
75,000
89,400
504,500
144,400
Pharoah Company
2022
$561,000
296,769
78,540
4,488
6,171
82,900
36,400
2021
138,300 123,300
31,800
30,200
$78,300
24,600
124,000 124,000
30,600
21,200
Transcribed Image Text:Here are comparative financial statement data for Oriole Company and Pharoah Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings Oriole Company 2022 $1,908,000 999,792 257,580 7,632 55,332 327,500 $314,800 520,800 64,800 108,000 504,500 2021 171,000 498,500 75,000 89,400 504,500 144,400 Pharoah Company 2022 $561,000 296,769 78,540 4,488 6,171 82,900 36,400 2021 138,300 123,300 31,800 30,200 $78,300 24,600 124,000 124,000 30,600 21,200
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