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Use the Comparative Income Statements and Balance Sheets Below to Complete

question 29

Essay

Use the comparative income statements and balance sheets below to complete the required ratio analysis. $Use the comparative income statements and balance sheets below to complete the required ratio analysis. Additional information: All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $139,200; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding 42,000. \begin{array}{lrr}&20-\mathrm{C}&20-\mathrm{B}\\ \text { Number of common shares } & 42,000 & 42,000 \\ \text { Dividends paid } & \$ 44,400 & \$ 49,000 \end{array} Prepare a profitability analysis by calculating for 20-B and 20-C the (a) net sales to assets, (b) return on total assets, (c) return on common stockholders' equity, (d) earnings per share, and (e) book value per share. Indicate whether there has been an improvement or not from 20-B to 20-C. Round to two decimal places.$ $Use the comparative income statements and balance sheets below to complete the required ratio analysis. Additional information: All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $139,200; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding 42,000. \begin{array}{lrr}&20-\mathrm{C}&20-\mathrm{B}\\ \text { Number of common shares } & 42,000 & 42,000 \\ \text { Dividends paid } & \$ 44,400 & \$ 49,000 \end{array} Prepare a profitability analysis by calculating for 20-B and 20-C the (a) net sales to assets, (b) return on total assets, (c) return on common stockholders' equity, (d) earnings per share, and (e) book value per share. Indicate whether there has been an improvement or not from 20-B to 20-C. Round to two decimal places.$ Additional information:
All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $139,200; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding 42,000. $\begin{array}{lrr}&20-\mathrm{C}&20-\mathrm{B}\\\text { Number of common shares } & 42,000 & 42,000 \\\text { Dividends paid } & \$ 44,400 & \$ 49,000\end{array}$ Prepare a profitability analysis by calculating for 20-B and 20-C the (a) net sales to assets, (b) return on total assets, (c) return on common stockholders' equity, (d) earnings per share, and (e) book value per share. Indicate whether there has been an improvement or not from 20-B to 20-C. Round to two decimal places. $Use the comparative income statements and balance sheets below to complete the required ratio analysis. Additional information: All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $139,200; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding 42,000. \begin{array}{lrr}&20-\mathrm{C}&20-\mathrm{B}\\ \text { Number of common shares } & 42,000 & 42,000 \\ \text { Dividends paid } & \$ 44,400 & \$ 49,000 \end{array} Prepare a profitability analysis by calculating for 20-B and 20-C the (a) net sales to assets, (b) return on total assets, (c) return on common stockholders' equity, (d) earnings per share, and (e) book value per share. Indicate whether there has been an improvement or not from 20-B to 20-C. Round to two decimal places.$

Definitions:

Annual Dividend

The total dividend payments a company makes to its shareholders in one year.

Increase Annually

A repeated growth or rise in value or amount each year.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profits through dividends and/or capital appreciation.

Straight Voting

Procedure where a shareholder may cast all votes for each member of the board of directors.