Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 20Y6 $300,000 110,000 44,000 22,000 Total assets Notes payable (8% interest) Common stock Preferred 6% stock, $100 par (no change during year) Retained earnings 20Y7 $333,000 110,000 44,000 22,000 114,020 82,030 66,000 The 2017 net income was $33,310, and the 2016 net income was $17,350. No dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 and 2017. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. Round percentages to one decimal place. 20Y7 Return on total assets Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that the company's profitability has j on stockholders' equity in both years, there must be 2015 $267,000 110,000 44,000 22,000 96 % 20Y6 %6 % % Since the rate of return on total assets is leverage from the use of det. the return

Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 20Y6 $300,000 110,000 44,000 22,000 Total assets Notes payable (8% interest) Common stock Preferred 6% stock, $100 par (no change during year) Retained earnings 20Y7 $333,000 110,000 44,000 22,000 114,020 82,030 66,000 The 2017 net income was $33,310, and the 2016 net income was $17,350. No dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 and 2017. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. Round percentages to one decimal place. 20Y7 Return on total assets Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that the company's profitability has j on stockholders' equity in both years, there must be 2015 $267,000 110,000 44,000 22,000 96 % 20Y6 %6 % % Since the rate of return on total assets is leverage from the use of det. the return

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 17E

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