Academy Driving School reported the following in its financial statements: Calculate 2014 EPS and ROE. Another driving
Question:
Calculate 2014 EPS and ROE. Another driving school in the same city reported a higher net income ($45,000) in 2014, yet its EPS and ROE ratios were lower than those for the Academy Driving School. Explain how this apparent inconsistency could occur?
Transcribed Image Text:
2014 2013 Number of common shares Net income Cash dividends paid on common shares Total shareholders' equity 1,500ו 500,וו $ 18,000 3,000 $220,000 $ 23,000 $ 3,000 $240,000
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EPS Net Income Average Number of Common Shares Outstanding 23000 2...View the full answer
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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