Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $221,000 $199,000 $177,000 Notes payable (8% interest) 70,000 70,000 70,000 Common stock 28,000 28,000 28,000 Preferred 3% stock, $100 par 14,000 14,000 14,000 (no change during year) Retained earnings 87,080 60,900 42,000 The 20Y7 net income was $26,600, and the 20Y6 net income was $19,320. 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 stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. 20Y7 20Υ6 Return on total assets % % Return on stockholders' equity % % Return on common stockholders' equit %

Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $221,000 $199,000 $177,000 Notes payable (8% interest) 70,000 70,000 70,000 Common stock 28,000 28,000 28,000 Preferred 3% stock, $100 par 14,000 14,000 14,000 (no change during year) Retained earnings 87,080 60,900 42,000 The 20Y7 net income was $26,600, and the 20Y6 net income was $19,320. 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 stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. 20Y7 20Υ6 Return on total assets % % Return on stockholders' equity % % Return on common stockholders' equit %

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Description: Profitability RatiosThe following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:December 3120Y720Y620Y5Total assets$221,000$199,000$177,000Notes payable (8% interest)70,00070,00070,000C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Profitability Ratios
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
December 31
20Y7
20Y6
20Y5
Total assets
$221,000
$199,000
$177,000
Notes payable (8% interest)
70,000
70,000
70,000
Common stock
28,000
28,000
28,000
Preferred 3% stock, $100 par
14,000
14,000
14,000
(no change during year)
Retained earnings
87,080
60,900
42,000
The 20Y7 net income was $26,600, and the 20Y6 net income was $19,320. 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 stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and
20Y7. Round percentages to one decimal place.
20γ7
20Y6
Return on total assets
%
%
Return on stockholders' equity
%
%
Return on common stockholders' equity
%
%

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