Identify whether the stock increased or decreased in attractiveness during the past two years using four ratios.

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Chapter 12, Problem 29BE

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Identify whether the stock increased or decreased in attractiveness during the past two years using four ratios.

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(Learning Objectives 2, 3, 4: Reconstruct transactions from the financial statements)Parker Networking Solutions began operations on January 1, 2018, and immediately issuedits stock, receiving cash. Parker’s balance sheet at December 31, 2018, reported the followingstockholders’ equity:Common stock, $1 par...................... $ 59,000Additional paid-in capital.................. 473,500Retained earnings.............................. 40,000Treasury stock, 300 shares................ (3,600)Total stockholders’ equity............ $568,900During 2018, Parkera. issued stock for $9 per share.b. purchased 800 shares of treasury stock, paying $12 per share.c. resold some of the treasury stock.d. declared and paid cash dividends.

Using Excel to Calculate Equity Balances PROBLEM Pasta Creations issued additional shares of common shares, reported net income, and declared dividends during the year. Information concerning its equity is provided here. Beginning of year common shares Beginning of year retained earnings Additional common shares issued Net income reported Dividends declared $ 98,000 476,000 52,000 78,000 16,000 Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as a. Calculate the ending balances of (1) common shares, (2) retained earnings, and (3) total shareholders' equity. Common shares Retained earnings Total shareholders' equity b. Calculate the same amounts if the company had reported a net loss rather than net income and had not declared any dividends. Net loss amount Common shares Retained earnings Total shareholders' equity $ 72,000

(Learning Objective 7: Calculate return on assets) Handley Grocery Corporationreported the following information in its comparative financial statements for the fiscal yearended January 31, 2018:January 31,2018January 31,2017Net sales....................................Net earnings..............................Average total assets...................$50,000$ 2,200$40,000$48,350$ 2,100$39,300Requirements1. Compute the net profit margin ratio for the years ended January 31, 2018, and 2017. Did itimprove or worsen in 2018?2. Compute asset turnover for the years ended January 31, 2018, and 2017. Did it improve orworsen in 2018?3. Compute return on assets for the years ended January 31, 2018, and 2017. Did it improveor worsen in 2018? Which component—net profit margin ratio or asset turnover—wasmostly responsible for the change in the company’s return on assets?