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, $1.15, 200 shares issued and outstanding 1,000 1,000 Common shareholders' equity 46,700 43,000 Total shareholders' equity 47,700 44,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 78% (14 reviews)
ANSWER 1 To compute the return on total assets ROA and the return on common shareholders equit...View the full answer
Answered By
Churchil Mino
I have been a tutor for 2 years and have experience working with students of all ages and abilities. I am comfortable working with students one-on-one or in small groups, and am able to adapt my teaching style to meet the needs of each individual. I am patient and supportive, and my goal is to help my students succeed.
I have a strong background in math and science, and have tutored students in these subjects at all levels, from elementary school to college. I have also helped students prepare for standardized tests such as the SAT and ACT. In addition to academic tutoring, I have also worked as a swim coach and a camp counselor, and have experience working with children with special needs.
0.00
0 Reviews
10+ Question Solved
Related Book For
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood
Question Posted:
Students also viewed these Business questions
-
Woldenga Equipment Inc. reported the figures shown below for 2017 and 2016: Compute the rate of return on total assets (ROA) and the rate of return on common shareholders' equity (ROE) for 2017. Do...
-
Woldenga Equipment Inc. reported the figures shown below for 2014 and 2013. ____________________________________2014 2013 Income statement: Interest expense.............$ 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...
-
A 60- lossless line is connected to a source with Vg = 10 <0o Vrms and Zg = 50 j40 and terminated with a load j40. If the line is 100 m long and = 0.25 rad/m, calculate Zin and V at (a) The sending...
-
Define currency exchange rates and distinguish between "direct" and "indirect" quotations. LO6
-
Newmark & Co. Real Estate, Inc., contacted 2615 East 17 Street Realty, LLC, to lease certain real property on behalf of a client. Newmark e-mailed the landlord a separate agreement for the payment of...
-
Price is $10 per unit, variable costs are $4 per unit, and fixed costs are $8 per unit (at current sales volume). How much will the profit change in short term if sales volume is increase by 10...
-
The soil mass in Figure P9-13 is loaded by a force transmitted through a circular footing as shown. Determine the stresses in the soil. Compare the values of r using an axisymmetric model with the ...
-
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...
-
Use the data in Table 8.2 to determine the redemption value of a $500-face-value compound interest Series S120 Canada Savings Bond on a. November 1, 2015 b. April 15, 2016. Table 8.2 Interest S108...
-
int rFibNum(int a, int b, int n) { if(n == 1) return a; else if( n == 2) return b; else return rFibNum(a,b, n-1) + rFibNum(a, b, n-2); } In the code above; a) how many base cases are there? b) what...
-
Watch the Super Nanny (i.e., Jo Frost) episode "The Orm Family" (Season 1, Episode 3) and answer the following questions. Unless otherwise specified, your answers should focus on Declan (the 3 year...
-
2. Suppose Ford officials were asked to justify their decision. What moral principles do you think they would invoke? Assess Ford's handling of the Pinto from the perspective of each of the moral...
-
2. You have been asked to design the proto-type of an Automatic Grocery Vending Machine 10 (AGVM) for the super store. Automatic Grocery Vending Machine (AGVM) is a machine where different types of...
-
1. What does Porter's 5 Forces analysis strategy do? 2. Do most people agree Why? or disagree with this aspect Why? Here is the reference video, https://www.youtube.com/watch?v=Dfp23xSqpdk 3. What...
-
Jelly Co. processes jam and sells it to the public. Jelly leases equipment used in its production processes from Squishy, Inc. This year, Jelly leases a new piece of equipment from Squishy. The lease...
-
You deposit $10,000 in a savings account that earns 7.5% simple interest per year. What is the minimum number of years you must wait to double your balance? Suppose instead that you deposit the...
-
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...
-
Suppose the S&P 500 currently has a level of 960. One contract of S&P 500 index futures has a size of $250 S&P 500 index. You wish to hedge an $800,000-portfolio that has a beta of 1.2. (A)In order...
-
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during...
-
Haley is 57 years of age. She is planning for future long-term care needs. She knows that yearly nursing home costs in her area are currently $69,000, with prices increased by 5 percent annually....
Study smarter with the SolutionInn App