In 2010, Worthington Corporation Had Net Sales of $500,000 and Cost

question 90

Essay

In 2010, Worthington Corporation had net sales of $500,000 and cost of goods sold of $360,000. Operating expenses were $93,000, and interest expense was $7,500. The corporation's tax rate is 30%. The corporation declared preferred dividends of $7,000 in 2010, and its average common stockholders' equity during the year was $200,000.
Instructions
(a) Prepare an income statement for Worthington Corporation.
(b) Compute Worthington Corporation's return on common stockholders' equity for 2010.

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