FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
Please see the attachment for details:
The 20Y7 net income was $411,000, and the 20Y6 net income was $462,500. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
a. Determine the return on total assets, the return on
b. What conclusions can be drawn from these data as to the company’s
profitability?
Transcribed Image Text:20Y7
20Υ6
20Y5
Total assets ..
$5,200,000
$5,000,000
$4,800,000
Notes payable (6% interest) .
Common stock......
Preferred 2.5% stock, $100 par
(no change during year)
Retained earnings.....
2,500,000
2,500,000
2,500,000
250,000
250,000
250,000
500,000
500,000
500,000
1,574,000
1,222,000
750,000
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