Accel's Companies, a home improvement store chain, reported the following summarized figures: Accel's Companies Income Statement Years Ended May 31, 2024 and 2023 2024 Net Sales Revenue $40,600 Cost of Goods Sold $28,400 Interest Expense $600 All Other Expenses $4,300 Net Income $7,300 2023 Net Sales Revenue $40,500 Cost of Goods Sold $30,600 Interest Expense $570 All Other Expenses $8,200 Net Income $1,130 Accel's Companies Balance Sheet May 31, 2024 and 2023 Assets 2024 2023 Cash $2,400 $900 Short-term Investments $28,000 $9,000 Accounts Receivable $7,500 $5,200 Merchandise Inventory $6,900 $8,600 Other Current Assets $8,000 $1,500 Total Current Assets $52,800 $25,200 All Other Assets $30,000 $29,000 Total Assets $82,800 $54,200 Liabilities 2024 2023 Total Current Liabilities $28,000 $13,200 Long-term Liabilities $13,900 $10,300 Total Liabilities $41,900 $23,500 Stockholders' Equity Common Stock $11,000 $11,000 Retained Earnings $29,900 $19,700 Total Equity $40,900 $30,700 Total Liabilities and Equity $82,800 $54,200 Accel's has 10,000 common shares outstanding during 2024. Beginning by selecting the formula 2. Compute the rate of return on total assets for 2024. 4. Compute the rate of return on common stockholders' equity for 2024. 5. Are these rates of return strong or weak? Explain your reasoning.
Accel's Companies, a home improvement store chain, reported the following summarized figures:
Accel's Companies
Income Statement
Years Ended May 31, 2024 and 2023
2024
Net Sales Revenue $40,600
Cost of Goods Sold $28,400
Interest Expense $600
All Other Expenses $4,300
Net Income $7,300
2023
Net Sales Revenue $40,500
Cost of Goods Sold $30,600
Interest Expense $570
All Other Expenses $8,200
Net Income $1,130
Accel's Companies
Balance Sheet
May 31, 2024 and 2023
Assets
2024 2023
Cash
$2,400 $900
Short-term Investments
$28,000 $9,000
Accounts Receivable
$7,500 $5,200
Merchandise Inventory
$6,900 $8,600
Other Current Assets
$8,000 $1,500
Total Current Assets
$52,800 $25,200
All Other Assets
$30,000 $29,000
Total Assets
$82,800 $54,200
Liabilities
2024 2023
Total Current Liabilities
$28,000 $13,200
Long-term Liabilities
$13,900 $10,300
Total Liabilities
$41,900 $23,500
Common Stock
$11,000 $11,000
$29,900 $19,700
Total Equity
$40,900 $30,700
Total Liabilities and Equity
$82,800 $54,200
Accel's has 10,000 common shares outstanding during 2024. Beginning by selecting the formula
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2. |
Compute the rate of return on total assets for 2024. |
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4. |
Compute the rate of return on common stockholders' equity for 2024. |
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5. |
Are these |
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