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Calculate for the following a. Calculate the return on stockholders' equity. Round to one decimal place: b. Calculate the earnings per share. Round to two
Calculate for the following
a. Calculate the return on stockholders' equity. Round to one decimal place:
b. Calculate the earnings per share. Round to two decimal places.
c. Calculate the price earnings ratio. Round to one decimal place.
d. Calculate the dividend yield. Round to one decimal place.
The comparative financial statements of Warren Corporation are as follows. The market price of Warren Corporation common stock was $5.00 on December 31, 20X2. Warren Corporation Comparative Retained Earnings For the Years Ended December 31, Statement 20X2 and 20X1 20X2 $2,025 20X1 Retained earnings, January 1 Add: Net income for the year $1,850 300 200 Deduct: Dividends: On preferred stock ($15) (10) $2.300 ($15) (10) $2,025 On common stock Retained earnings, January 31 Warren Corporation Comparative Income For the Years Ended December 31, Statement 20X2 and 20X1 20X2 20X1 $3,375 (2,360) $1,015 (125) (550) Sales (2,000) $1,160 $840 (100) (530) ($630) $210 Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income ($675) $340 Other revenues Other expense (interest) 20 5 (15) $330 (30) $300 (10) $220 (20) $200 Income before income tax Income tax expense Net income Warren Corporation Comparative Balance Sheet December 31, 20X2 and 20X1 20X2 20X1 Assets Current Assets: Cash $600 2,500 $480 Marketable securities 1,850 Accounts receivable (net) 400 350 200 100 Inventories Prepaid expenses 300 220 $4,000 $3,000 Total current assets Long-term investments Property, plant, and equipment (net) Total assets 1,000 2,000 3.000 $8,000 5.000 $10,000 Liabilities $2,500 $800 Current liabilities Long-term liabilities 975 1000 $3,500 Total liabilities 1,775 Stockholders' Equity Preferred stock, $1.00 stock, $60 par value Common stock, $3 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 900 900 3,300 3,300 2,300 $6,500 $10,000 2.025 $6,225 $8,000
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