Use the Following Selected Financial Data from the Balance Sheet

question 66

Essay

Use the following selected financial data from the balance sheet at the end of 2015 and 2014:
$\begin{array}{lll}& \underline {\text { June 30, 2015 }} & \underline{\text { June 30, 2014 } } \\ \text { Total current liabilities } &\$ 495,000 & \$ 320,000 \\ \text { Bonds payable } &600,000 & 500,000 \\ \text { Common stock \$5 par } &800,000 & 800,000 \\ \text { Retained earnings } &\underline{200,000} & \underline{100,000} \\ \text { Total stockholders equity } &\underline{1.000,000} &\underline{900,000}\\ \text { Total liabilities and stockholders' equity } &\underline{2,095,000 }&\underline{ 1,720,000}\end{array}$ Net income for 2015 and 2014 was $120,000 and $460,000,respectively.No stock was issued during either year,but dividends of $20,000 and $16,000 were paid in 2015 and 2014,respectively.
A) What is return on common equity ratio for 2015 ?
B) What is the dividend payout ratio for 2015 ?
C) What is the earnings per share measure for 2015 ?
D) What other stockholder ratios would be helpful in assessing information of interest to stockholders?

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