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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

Use the Following Selected Financial Data from the Balance Sheet