Partridge Inc $\begin{array}{llcc} \text {Net income } & \$180,000 \\ \text { Market price per share of common stock } &\$20.00/\text {share}\\\end{array}$

question 87

Essay

Partridge Inc. provides the following information for the year 2014:
$\begin{array}{llcc} \text {Net income } & \$180,000 \\ \text { Market price per share of common stock } &\$20.00/\text {share}\\\end{array}$

Common stockholders' equity at Jan. 1, 2014 $\quad$ $\quad$ $\quad$ $1,100,000 Common stockholders' equity at Dec. 31, 2014
$1,500,000
$12 \%$ preferred stock cutstanding $\quad$ $\quad$ $\quad$ $100,000
Calculate return on common stockholders' equity. (Round the percentage to two decimals)

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on hours worked and pay rates.

Labor Efficiency Variance

The variance between the actual number of labor hours utilized and the anticipated standard labor hours for the achieved production volume.

Raw Materials Inventory

The stock of materials on hand that are used in the manufacturing process to produce goods.

Transaction (b)

Likely refers to a specific, numbered transaction within a set of financial records or accounting entries, without additional context provided.