Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate Return on Common Equity. Round the

Canadian Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, calculate Return on Common Equity.

Round the answers to two decimal places in percentage form.(Write the percentage sign in the "units" box).

Balance Sheet December 31, 2013

Cash and marketable securities$112,accountants payable$211,000 Accounts receivable$325,000 Notes payable$51,500 Inventories$426,000 Accrued expenses$50,100 Prepaid expenses$10,700 Total current liabilities$312,600 Total current assets$873,700 Long-term debt$225,000 Gross fixed assets$1,514,000 Par value and paid-in-capital$117,000 Less: accumulated depreciation$315,000 Retained Earnings$1,418,100 Net fixed assets$1,199,000 Common Equity 1,535,100 Total assets$2,072,700 Total liabilities and owner's equity$2,072,700

Income Statement, Year of 2013

Net sales (all credit)$3,256,600.00 Less: Cost of goods sold$2,572,714.00 Selling and administrative expenses$323,000.00 Depreciation expense$115,000.00 EBIT $245,886.00 Interest expense$29,600.00 Earnings before taxes$216,286.00 Income taxes$86,514.40 Net income$129,771.60

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

13th edition

132743469, 978-0132743464

More Books

Students also viewed these Finance questions