SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $424,100 in 2023 and $373,500 in 2022. Equity and Liabilities Share capital-common (141, 800 shares issued) Retained earnings (Note 1) Accrued liabilities Notes payable (current) Accounts payable Total equity and liabilities Return on equity 2022 Book value per share Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,618,900 at December 31, 2021.) (Round your answers to 1 decimal place.) % 2022 2023 2023 $1,228, 500 429, 500 % 2023 8,500 69, 700 60, 800 $1,797,000 2022 $1,228, 500 274,500 6,600 2. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.) 56, 600 171, 900 $1,738, 100

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
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SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $424,100 in 2023 and
$373,500 in 2022.
Equity and Liabilities
Share capital-common (141, 800 shares issued)
Retained earnings (Note 1)
Accrued liabilities
Notes payable (current)
Accounts payable
Total equity and liabilities
Return on equity
Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023.
Required:
1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,618,900 at December 31, 2021.)
(Round your answers to 1 decimal place.)
2022
Book value per share
2023
2022
2023
$1,228,500
429, 500
8, 500
69, 700
60, 800
$1,797,000
%
2. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.)
2023
2022
$1,228,500
274, 500
6, 600
56, 600
171,900
$1,738, 100
Transcribed Image Text:SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $424,100 in 2023 and $373,500 in 2022. Equity and Liabilities Share capital-common (141, 800 shares issued) Retained earnings (Note 1) Accrued liabilities Notes payable (current) Accounts payable Total equity and liabilities Return on equity Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,618,900 at December 31, 2021.) (Round your answers to 1 decimal place.) 2022 Book value per share 2023 2022 2023 $1,228,500 429, 500 8, 500 69, 700 60, 800 $1,797,000 % 2. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.) 2023 2022 $1,228,500 274, 500 6, 600 56, 600 171,900 $1,738, 100
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