The Following Selected Data Were Taken from the Financial Statements

question 168

Essay

The following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations:
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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.
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(a)Determine the return on total assets,the return on stockholders' equity,and the return 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:

Repressed Material

Memories, thoughts, or impulses unconsciously held out of awareness due to their threatening nature.

Psychoanalysis

Psychoanalysis is a therapeutic approach and theory of mental illness that attributes thoughts and behaviors to unconscious motives and conflicts.

Transference

In psychoanalysis, the tendency for a patient or client to project positive or negative feelings for important people from the past onto the therapist.

Countertransference

In psychotherapy, it refers to the emotions and projections that the therapist may feel towards the patient.