The Following Selected Data Were Taken from the Financial Statements

question 13

Short Answer

The following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations:
The Year 3 net income was $242,000 and the Year 2 net income was $308,000.  No dividends on common stock were declared during the 3 years.
(a)  Determine the rate earned on assets, the rate earned on stockholders' equity, and the rate earned on
      common stockholders' equity for Years 2 and 3. Round to one decimal place.
(b) What conclusion can be drawn from these data as to the company's profitability?

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Definitions:

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of manipulating, exploiting, or violating the rights of others.

Dependent Personality Disorder

A mental health condition characterized by a pervasive and excessive need to be taken care of, leading to submissive and clinging behavior and fears of separation.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, control, and rules, often at the expense of flexibility and efficiency.

Psychotherapy

A form of treatment for mental health problems that involves talking with a psychiatrist, psychologist, or other mental health provider.