The Following Information Is Available from the Balance Sheets at the End

question 3

Essay

The following information is available from the balance sheets at the end of 2018 and 2017 for Riverside Company:
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$\begin{array}{lrr}& \underline{2018}& \underline{2017}\\\text { Accounts payable } & \$ 80,000 & \$ 40,000 \\\text { Accrued liabilities } & 65,000 & 25,000 \\\text { Taxes payable } & 10,000 & 20,000 \\\text { Short-term notes payable } & 0 & 60,000 \\\text { Bonds payable due within next year } & 200,000 & 200,000\\\text { Total current liabilities } & \underline{ \$ 355,000 }& \underline{\$ 345,000 }\\\text { Bonds payable } & \underline{ \$ 800,000} & \underline{ \$ 300,000} \\\text { Common stock } \$ 5 \text { par } & \$ 1,000,000 & \$ 1,000,000\\ \text { Retained earnings } & \underline{ 695,000}& \underline{55,000} \\ \text { aolders' equity } & \underline{\$ 1,695,000}& \underline{\$1,055,000}\\ \text { Total liabilities and stockhol ders' equity } & \$ 2,850,000 &\$1,700,000\\ \end{array}$
Net income for 2018 and 2017 was $340,000 and $300,000,respectively.Answer the following:
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$$\text { A) Calculate the return on common stockholders' equity ratio for } 2018 \text {. }$$ ?
$$\text { B) What information is provided to users with the cal culation in part } ( A ) \text { ? Explain. }$$ C) What is the difference between the return on stockholders' equity ratio and the return on assets ratio?

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Definitions:

Joint

A structure in the body where two or more bones are connected, allowing for movement and support.

Movement

The act or process of moving or changing place or position.

Angle

A geometric figure formed by two rays, called the sides of the angle, sharing a common endpoint, called the vertex of the angle.

Synarthrosis

A type of joint that is immovable, typically found in the skull.