Solved

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

Question 178

Essay

The following information is available from the balance sheets at the end of 2018 and 2017 for Riverside Company:
?
20182017 Accounts payable $80,000$40,000 Accrued liabilities 65,00025,000 Taxes payable 10,00020,000 Short-term notes payable 060,000 Bonds payable due within next year 200,000200,000 Total current liabilities $355,000$345,000 Bonds payable $800,000$300,000 Common stock $5 par $1,000,000$1,000,000 Retained earnings 695,00055,000 aolders’ equity $1,695,000$1,055,000 Total liabilities and stockhol ders’ equity $2,850,000$1,700,000\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:
?
 A) Calculate the return on common stockholders’ equity ratio for 2018\text { A) Calculate the return on common stockholders' equity ratio for } 2018 \text {. } ?
 B) What information is provided to users with the cal culation in part (A) ? Explain. \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?

Correct Answer:

verifed

Verified

A) (Net Income - Preferred Dividends)/Av...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents