Woldenga Consulting Ltd. reported the figures shown below for 2020 and 2019: Required 1. Compute the return
Question:
Woldenga Consulting Ltd. reported the figures shown below for 2020 and 2019:
Required
1. Compute the return on total assets (ROA) and the return on common shareholders’ equity (ROE) for 2020. Round your answers to two decimal places.
2. Do these rates of return suggest strength or weakness? Give your reasons.
Transcribed Image Text:
2020 2019 Income statement Interest expense $ 5,200 $ 3,700 Net income 3,250 5,200 Balance sheet Total assets 105,000 95,000 Preferred shares, $1.15, 200 shares issued and outstanding 1,000 1,000 Common shareholders' equity 46,700 43,000 Total shareholders' equity 47,700 44,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
ANSWER 1 To compute the return on total assets ROA and the return on common shareholders equit...View the full answer
Answered By
Churchil Mino
I have been a tutor for 2 years and have experience working with students of all ages and abilities. I am comfortable working with students one-on-one or in small groups, and am able to adapt my teaching style to meet the needs of each individual. I am patient and supportive, and my goal is to help my students succeed.
I have a strong background in math and science, and have tutored students in these subjects at all levels, from elementary school to college. I have also helped students prepare for standardized tests such as the SAT and ACT. In addition to academic tutoring, I have also worked as a swim coach and a camp counselor, and have experience working with children with special needs.
0.00
0 Reviews
10+ Question Solved
Related Book For
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood
Question Posted:
Students also viewed these Business questions
-
Woldenga Equipment Inc. reported the figures shown below for 2017 and 2016: Compute the rate of return on total assets (ROA) and the rate of return on common shareholders' equity (ROE) for 2017. Do...
-
Woldenga Equipment Inc. reported the figures shown below for 2014 and 2013. ____________________________________2014 2013 Income statement: Interest expense.............$ 5,200.$ 3,700 Net...
-
For 7a-c, use u1= 4. Round your answers to the nearest thousandth. a. For a geometric series with r = 0.7, find S10 and S40. b. For r = 1.3, find S10 and S40. c. For r = 1, find S10 and S40. d. Graph...
-
What are some examples of artificial selection? How are artificial selection and natural selection similar? How are they different?
-
A stone is dropped into a lake, creating a circular ripple that travels outward at a speed of 60 cm /s. (a) Express the radius of this circle as a function of the time (in seconds). (b) If A is the...
-
What are the common types of damping?
-
For each of the following organizational units, indicate whether the unit would most likely be classified as a cost center \((C)\), a revenue center \((R)\), a profit center \((P)\), or an investment...
-
On January 31, 2018, The Hershey Company acquired Amplify Snack Brands, Inc., its largest business acquisition to date. Access Hersheys 2018 financial statements and media reports near the time of...
-
A company just paid a $1.60 per share annual dividend. The company is planning on paying $2.20, $2.35, $2.45, and $2.60 a share over the next 4 years, respectively. After that, the dividend will be a...
-
ABE Plumbing Inc. opened its doors in 1979 as a wholesale supplier of plumbing equipment, tools, and parts to hardware stores, home-improvement centers, and professional plumbers in the Allentown-...
-
The following is an alphabetical list of accounts of Outlet Services Inc. as at January 31, 2019. The balances are prior to the closing journal entries. All accounts have normal balances. Accrued...
-
The balance sheet of Pujari Sports Corp. reported the following: Cumulative preferred shares, 300 shares issued and outstanding, liquidation value $15,000...
-
Selected information relating to Yost Companys operations for the most recent year is given below: The company applies overhead cost to products on the basis of standard machine-hours. Required: 1....
-
A painting with a mass of 21 kg is suspended by two wires from hooks on a ceiling. if the wires have lengths of 21 cm and 30 cm and the distance between the hooks is 35 cm , find the tension in each...
-
answer this question in Java and only if you are fully confident of the answer. The code should work without any errors. These are not stocks, but transactions that have occurred. Cashback value can...
-
Question 1 (20P) When the single-index model is used, the variance of a security's return is expressed as: o = o +0 Derive the equation above for the variance security's return by using the...
-
Frank gave Betty real estate with a basis of $100,000 and marketable securities with a basis of $20,000. In exchange, Betty gave Frank real estate with a basis of $240,000 and worth $300,000. The...
-
3. Consider the stratified fluid depicted below which is being sheared between two infinite parallel plates. If the upper plate is constrained to move with velocity U, the lower plate is fixed, and...
-
Solve Problem 6.125 when (a) β = 0, (b) β = 6°. PROBLEM 6.125 The control rod CE passes through a horizontal hole in the body of the toggle system shown. Knowing that link...
-
In a large midwestern university, 30% of the students live in apartments. If 200 students are randomly selected, find the probability that the number of them living in apartments will be between 55...
-
Match the following terms with their definitions. 1. Internal control 2. Control procedures 3. Firewalls 4. Encryption 5. Environment 6. Information system 7. Separation of duties 8. Collusion 9....
-
Each of the following situations has an internal control weakness. a. Jade Applications has decided that one way to cut costs in the upcoming year is to fire the external auditor. The business...
-
Visit www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation 2011 Fiscal Year Annual Report. Study the audit opinion (labeled Report of Independent Registered Public Accounting...
-
purchased system for $5800 on january 1, useful life of 5 years and salvage value of $600. what would be the depreciation expense for the second year using the double declining balance method
-
The comparative balance sheets for Sandhill Company show these changes in noncash current asset accounts: Accounts Receivable increased $75,400, Prepaid Expenses decreased $26,390, and Inventory...
-
Week 3 Discussion - Company Financials 122 Unread replies 122 Replies The first part of your Business Consulting Plan is due this week. In preparation, research your company's financial statements or...
Study smarter with the SolutionInn App