Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3.3ME
Mini-Exercise 3.3
LO 4
Calculate ROE Firm L had net assets at the end of the year of $730,000. The only transactions affecting
Required:
Calculate Firm L’s average stockholders’ equity’ and return on equity’ (ROE).
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Students have asked these similar questions
Ratio of liabilities to stockholders' equityThe following data were taken from Alvarado Company's balance sheet:
Dec. 31. 20Y4
Dec. 31, 20Y3
Total liabilities
$4,085,000
$2,880,000
Total stockholders' equity
4,300,000
3,600,000
a. Compute the ratio of liabilities to stockholders' equity for each year.b. Has the creditor's risk increased or decreased from December 31,2013, to December 31, 20Y4?
Total liabilities and shareholders' equity
$ 27,876
$ 27,605
26
Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year. Do not round intermediate calculations.
Round your final answers to 2 decimal places.)
a. Return on equity (use average balance sheet figures)
%
b. Return on assets (use average balance sheet figures)
c. Return on capital (use average balance sheet figures)
%
d. Days in inventory (use start-of-year balance sheet figures)
e. Inventory turnover (use start-of-year balance sheet figures)
days
f. Average collection period (use start-of-year balance sheet figures)
days
g. Operating profit margin
h. Long-term debt ratio (use end-of-year balance sheet figures)
%
i. Total debt ratio (use end-of-year balance sheet figures)
j. Times interest earned
k. Cash coverage ratio
1. Current ratio (use end-of-year balance sheet figures)
m. Quick ratio (use end-of-year balance sheet figures)
Common Stockholders' Profitability Analysis
A company reports the following:
Net income
$255,000
Preferred dividends
10,200
Average stockholders' equity
2,125,000
Average common stockholders' equity
1,171,292
Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your answers to one decimal place.
a. Return on Stockholders' Equity
fill in the blank 1 %
b. Return on Common Stockholders’ Equity
Chapter 3 Solutions
Accounting: What the Numbers Mean
Ch. 3 - Prob. 3.1MECh. 3 - Mini-Exercise 3.2 LO 3 ROI analysis using the...Ch. 3 - Mini-Exercise 3.3 LO 4 Calculate ROE Firm L had...Ch. 3 - Prob. 3.4MECh. 3 - Mini-Exercise 3.5 LO 6 Calculate current...Ch. 3 - Mini-Exercise 3.6 LO 6 Calculate working capital...Ch. 3 - Exercise 3.7 LO 2 Compare investment alternatives...Ch. 3 - Prob. 3.8ECh. 3 - Exercise 3.9 LO 2 Compare investment alternatives...Ch. 3 - Exercise 3.10 LO 2 Compare investment alternatives...
Ch. 3 - Exercise 3.11 LO 3 ROI analysis using the DuPont...Ch. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Exercise 3.15 LO 6 Effect of transactions on...Ch. 3 - Exercise 3.16 LO 6 Effect of transactions on...Ch. 3 - Calculate profitability measures using annual...Ch. 3 - Prob. 3.18PCh. 3 - Problem 3.19 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.20 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.21 LO 3 Applications of ROI using the...Ch. 3 - Prob. 3.22PCh. 3 - Case 3.23 LO 3. 4, 6, 2 Focus company-analysis of...Ch. 3 - Case 3.24 LO 3, 4, 6, 7 Analysis of liquidity' and...
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