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2. Pacific Fixtures lists the following accounts as part of its balance sheet. Total assets $10,000,000 Accounts payable $ 2,000,000 Notes payable (8%) 1,000,000 Bonds
2. Pacific Fixtures lists the following accounts as part of its balance sheet. Total assets $10,000,000 Accounts payable $ 2,000,000 Notes payable (8%) 1,000,000 Bonds (10%) 3,000,000 Common stock at par 1,000,000 Contributed capital in excess of par 500,000 Retained earnings 2,500,000 Total liabilities and stockholders' equity $10,000,000 Compute the return on stockholders' equity if the company has sales of $20 mil- lion and the following net profit margin: a. 3 percent b. 5 percent
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