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B. Cody Construction declared and paid a cash dividend of $7,100 in the current year. Its comparative financial statements, prepared at December 31, reported the

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B. Cody Construction declared and paid a cash dividend of $7,100 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year $ 135,000 62,000 73,000 41,000 4.500 27,500 8.250 $ 19,250 $ 119,000 58,000 61,000 37,000 4.500 19,500 5.850 $ 13,650 Income Statement Sales Revenue Cost of Goods Sold Grons Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (301) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Totes Payable (long-term) Total Liabilities Comon Stock (par $10) Tetained Earnings Total Liabilities and Stockholders. Equity $ 76,025 22,000 30.000 100,000 $ 226,025 $ 47,000 1,125 45.000 93,125 93,000 41.900 $ 228.025 $ 33,000 17.000 43,000 110.000 $ 205,000 $ 34,500 750 45,000 80,250 93,000 29.750 5 203,000 3 10 points wir Cool previous year? 4. Stockholders' equity totaled $105,000 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. Are the current-year results better, or worse, than those for the previous year? 5. Net property and equipment totaled $115,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Are the current-year results better, or worse than those for the previous year? 6. Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 7. Compute the times interest earned ratios for the current and previous years. Are the current-year results better, or worse than those for the previous year? 8. Aner Cody Construction released its current year's financial statements, the company's stock was trading at $23. After the release of its previous year's financial statements, the company's stock price was $20 per share. Compute the P/E ratios for both years, Does it appear that investors have become more for less) optimistic about Cody's future success? ook Part References Complete this question by entering your answers in the tabs below. Required 4 Required 5 Required 6 Required 7 Required: Required 2 Required Required 4-a. Stockholders' equity totaled $105,000 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. (Round percentage values to 1 decimal place.) 4-b. Are the current-year results better or worse, than those for the previous year? 4- Current Year 4-a. Previous Year 4-6. Current year return on equity ratio

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