Property plant and equipment $3,200,000 Liabilities Current Liabilities                            $1,000,000 Note payable, 6%, due in 15 years   $2,000,000 Total Liabilities                                                             $3,000,000   Stockholders’ equity Preferred $10 stock, $100 par (no change during year)     $1,000,000 Common Stock $10 par (no change during year)              $2,000,000 Retained Earnings: Balance, beginning of year                                       $1,570,000 Net Income                                                       930,000 Preferred Dividends                                         (100,000) Common Dividends                                                     (400,000) Balance, beginning of year                                                                   $2,000,000 Total Stockholders’ equity                                                      $5,000,000 Sales                                                   $18,900,000 Interest Expense                                        $120,000   Assuming that Long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the Returns on Stockholders’ equity. round to one decimal place. How to calculate the previous year/beginning of the year balance in Stockholders’ equity? Thank you

Question

Property plant and equipment $3,200,000

Liabilities

Current Liabilities                            $1,000,000

Note payable, 6%, due in 15 years   $2,000,000

Total Liabilities                                                             $3,000,000

 

Stockholders’ equity

Preferred $10 stock, $100 par (no change during year)     $1,000,000

Common Stock $10 par (no change during year)              $2,000,000

Retained Earnings:

Balance, beginning of year                                       $1,570,000

Net Income                                                       930,000

Preferred Dividends                                         (100,000)

Common Dividends                                                     (400,000)

Balance, beginning of year                                                                   $2,000,000

Total Stockholders’ equity                                                      $5,000,000

Sales                                                   $18,900,000

Interest Expense                                        $120,000

 

Assuming that Long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the Returns on Stockholders’ equity. round to one decimal place.

How to calculate the previous year/beginning of the year balance in Stockholders’ equity?

Thank you

 

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: The following information is available for the first month of operations of Bahadir Company, a manuf...

A: Cost of goods sold has been calculated by taking the gross profit subtracted from the sales.

Q: Are revenue and expenses equity accounts  that cash and land are to assets?

A: Statement of Retained Earning is a financial statement that represents the changes to the retained e...

Q: Suppose Casey Title Company normally charges $400 for services related to selling a house. As part o...

A: Click to see the answer

Q: At the end of the current year. Accounts Receivable has a balance of $4,375,000; Allowance for Doubt...

A: a.Detremine the amount of adjusting entry for uncollectible accounts.

Q: 4. Homework Chapter 10

A: Common stock:  Common stock is the instrument used by the company for raising funds from the general...

Q: 1-9 (2) Calculate the missing amount Revenues for 2028 $63,000 Dividends for 2028 $21,000 Expenses f...

A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but n...

Q: Parrish pg13 How do you find the missing amount for the unkown accounts 1) Revenues $8000  Dividends...

A: Retained earnings refers to the amount of net income which is left after paying dividend to the shar...

Q: A hosiery buyer has an opening stock figure of $180,000, at retail, which carries a 52% markup. On M...

A: Calculate the amount of total markup.

Q: If customers owe a company for sales which have already been delivered but not yet paid how is that ...

A: When the company sells goods to its customer on credit basis then the amount equivalent to the value...

Q: Franklin Company's bank reconciliation as of August 31 is shown below. Bank balance $14,237 Book bal...

A: Bank reconciliation statement: Bank statement is prepared by the bank. The company maintains its own...

Q: Just part B

A: Working:

Q: Bramble Corp. has a weighted-average unit contribution margin of $30 for its two products Standard a...

A: Formula to compute the net income.

Q: Please help me step by step with how to get numbers.  Also if using excel please take out the formul...

A: Labor variances occur when there is difference in standard and actual labor cost.Labor rate Variance...

Q: High-Low Method The manufacturing costs of Rosenthal Industries for the first three months of the ye...

A: Click to see the answer

Q: #Sub part to be solved The Blossom Hotel opened for business on May 1, 2022. Here is its trial balan...

A: Journal entries are prepared to record the daily transactions of a business in the books. After jour...

Q: Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats...

A: Break-Even Sales (Unit):The Break-even number in units, as the name suggest, is the number of units ...

Q: At the end of the year, a company has the following accounts receivable and estimates of uncollectib...

A: Click to see the answer

Q: Martha has a 3-year-old child and pays $10,000 a year in day care costs. Her salary is $45,000. ...

A: Qualified person for Child and department care credit can be either of these: Any child who is your ...

Q: Which of the following is not subject to self-employment tax? a. Gain on the sale of real estate hel...

A: Self-employment tax: It is a tax levied on the income generated from self-employment. A tax of 12.4 ...

Q: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned ...

A: Click to see the answer

Q: taxpayer who has the following transactions during the current calendar tax year: Accrued bus...

A: Compute Geraldine’s net income from her business for current year as shown below:

Q: Which of the following accounts would not appear in the post closing trial balance? Equipment ,servi...

A: Post-closing trial balance:The post-closing trial balance is prepared after all the income statement...

Q: What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim th...

A: Investment income cannot be more than $3,500 for the 2018 tax year to claim the earned income credit...

Q: Margin of Safety a.  If Canace Company, with a break-even point at $631,800 of sales, has actual sal...

A: a. 1. Calculation of Margin of safety in dollars: Therefore, the margin of safety is $148,200. 2. Ca...

Q: High-Low Method for a Service Company Continental Railroad decided to use the high-low method and op...

A: Click to see the answer

Q: Ch.2 #4 The duality of effects can be described best as follows 1) When a transaction is recored in ...

A: Double entry system: Under double entry system of accounting each transaction of business is recorde...

Q: Current Attempt in Progress Sunland Company sells its product for $90 per unit. During 2019, it prod...

A: Absorption costing: Absorption costing is used to compute cost of a product. Under this method total...

Q: Concord Corporation owns equipment that cost $64,200 when purchased on January 1, 2017. It has been ...

A: Straight line method of calculating depreciation is a strategy for computing deterioration and amort...

Q: Question pinned below please answer all parts

A: A perpetual inventory framework is a technique for following and recording stock and expenses of pro...

Q: Accounting principal 2  chapter-14 Q:- On April 1,2019 Cowell Company issued $3000000, 20 year year,...

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from ...

Q: Lease or Sell Kincaid Company owns a equipment with a cost of $366,900 and accumulated depreciation ...

A: Differential Analysis: Differential analysis refers to the analysis of differential revenue that cou...

Q: Income Statement 1) Why are items such as sales and labour/Gross Profit on the CR side and items lik...

A: 1.Revenues are recorded in the credit side of the income statement. Thus, sales and labour/gross pro...

Q: I am working on a journal entry and this is the question. I am not sure on what accounts I should us...

A: Journalize the entry for salaries that will be paid next month:

Q: Problem 1: On Febuary 14, 2018, Floating Restaurant Company established a sales agency in Loboc. Upo...

A: 1.Cost of sales = Sales * Markup costCost of sales = 70,000 * (100/ 140)Cost of sales = 50,000In the...

Q: What statement(s) do the following go on? Please verify if they will show on more than one statement...

A: State the statements where line items go into as shown below:Net income – Net income is shown in the...

Q: Information related to plant assets, natural resources, and intangibles at the end of 2020 for Metlo...

A: Balance sheet comprises of Assets, liabilities and Stockholders' equity. Balance sheet as the name s...

Q: Text Ch.2 #2 Which of the following statements describe tranasactions that would be recorded in an a...

A: Accounting Transaction: An economic event, which causes impact (increases or decreases the value of ...

Q: Lease or sell Plymouth Company owns equipment with a cost of $550,000 and accumulated depreciation o...

A: Difference between Lease and Sale:Leasing is an arrangement wherein the owner of the asset permits a...

Q: How do you find the cash discount and the net amount paid when you know the gross amount of invoice ...

A: Cash discount is a rebate permitted by certain vendors of merchandise or by certain service provider...

Q: Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transporta...

A: a.Compute the break-even number of seats sold on a single round-trip flight for the overall enterpri...

Q: How much must I deposit into an account every month to have $1,500,000 in 15 years at a rate of 7% c...

A: A recurring deposit is a special type of term deposit offered by banks which help people with regula...

Q: Foster Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of t...

A: Compute straight-line depreciation rate.

Q: Explain how to calculate the after stock dividend to enter on the balance sheet for the below. At th...

A: Determine the effect of stock dividend.

Q: Jan. 1   Purchased a small company and recorded goodwill of $177,000. Its useful life is indefinite....

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to...

Q: Support Department Cost Allocation—Direct Method Christmas Timber, Inc., produces Christmas trees. T...

A: Cost allocation:Cost allocation refers to the process of allocating the cost associated with the pro...

Q: Machine Replacement Decision A company is considering replacing an old piece of machinery, which cos...

A: Differential analysis:

Q: Christine and Doug are married. In 2018, Christine earns a salary of $250,000 and Doug earns a salar...

A: Medicare Tax: It is a tax imposed by the Federal Insurance Contributions Act on both employers and e...

Q: By December 31, 2017, Culver Corporation had performed a significant amount of environmental consult...

A: Calculate the present value of note at the time of due (2019).

Q: What financial statement are the following posted on? 1) Net cash flows from operations 2) Sales 3) ...

A: Financial Statements are reports that convey the business activities and financial performance of th...

Q: im unsure how to work this problem

A: Click to see the answer