The Following Selected Data Were Taken from the Financial Statements

question 128

Essay

The following selected data were taken from the financial statements of the Berrol Group for December 31,2012,2011,and 2010:

The 2012 net income was $242,000 and the 2011 net income was $308,000.No dividends on common stock were declared between 2010 and 2012.
Required:
(1)Determine the rate earned on total assets,the rate earned on stockholders' equity,and the rate earned on common stockholders' equity for the years 2012 and 2011.Round to one decimal place.
(2)What conclusion can be drawn from these data as to the company's profitability?

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Definitions:

Conj

Short for conjunction, in logic, a compound statement formed by joining two statements with the word “and.”

Simp

A slang term often used to criticize a person who is perceived as giving excessive attention to someone they have an interest in, typically in a way that is not reciprocated.

Conj

An abbreviation for "conjunction," which is a compound statement formed by combining two statements with the word "and."

Add

To combine or join something with another, resulting in a sum or total.