Check my work Buy Now and Gerald's EZ Furniture are two publicly traded rental companies. They reported the following in their financial statements (in millions of dollars, except per-share amounts and stock prices): Buy Now points $ $ Gerald's EZ Furniture 2016 2015 $ 130 $ 184 1,348 1,254 2.36 3.10 2016 123 1,137 1.61 2015 175 1,140 2.30 Net income Total stockholders' equity Earnings per share Stock price when annual results reported eBook References 29.32 29.87 32.22 35.63 Required: 1-a. Compute the 2016 ROE for each company. Express ROE as a percentage. TIP: Remember that the bottom of the ROE ratio uses the average stockholders' equity. 1-b. Which company appears to generate greater returns on stockholders' equity in 2016? 2-a. Compute the 2016 P/E ratio for each company. 2-b. Which company do investors appear to value more? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the 2016 ROE for each company. Express ROE as a percentage. TIP: Remember that the bottom of the ROE ratio uses the average stockholders' equity. (Do not round your intermediate calculations. Round your answers to 1 decimal place.) ROE Buy Now Gerald's EZ Furniture Req 1A Req 1B Req 2A Req 2B Which company appears to generate greater returns on stockholders' equity in 2016? 10 Buy Now IO Gerald's EZ Furniture O Buy Nowe Reg la Req 1A Req 1B Req 18 Req 2A Reg za Req 2B Compute the 2016 P/E ratio for each company. (Round your answers to 1 decimal place.) P/E times Buy Now Gerald's EZ Furniture times Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Which company do investors appear to value more? O Buy Now Gerald's EZ Furniture Check my work At December 31, the records of Nortech Corporation provided the following selected and incomplete data: points Common stock (par $1; no changes during the current year). Shares authorized, 500,000. Shares issued, 2; issue price $14 per share. Common Stock account, $120,000. Shares held as treasury stock, 2,200 shares, cost $12 per share. Net income for the current year, $41,230. Dividends declared and paid during the current year, $20,026. Retained Earnings balance, beginning of the year, $147,000. eBook References Required: Complete the following: TIP: To determine the number of shares issued, divide the balance in the Common Stock account by the par value per share. (Round "per share" answers to 2 decimal places.) Shares Authorized 6 3. Shares Issued 1-c. Shares Outstanding 2. The Balance in Additional Paid-in Capital would be Earnings per Share is Dividends Paid per Share of Common Stock is Treasury Stock should be Reported in the Stockholders' Equity Section of the Balance Sheet in the Amount of Assume that the Board of Directors Approved a 2-for-1 Stock Split. After the Stock Split, the Par Value per Share will be Check my work Required information The following information applies to the questions displayed below./ Part 1 of 3 Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,800, declared no dividends, and the following selected transactions occurred in the order given: points eBook a. Issued 66,000 shares of the common stock at $12 cash per share. b. Reacquired 2,600 shares at $15 cash per share from stockholders; the shares are now held in treasury, C. Reissued 1,300 of the shares in transaction (b) two months later at $18 cash per share, References Required: 1. Indicating the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) Assets Liabilities Stockholders' Equity Check my work Required information [The following information applies to the questions displayed below.] Part 2 of 3 Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,800, declared no dividends, and the following selected transactions occurred in the order given: points eBook a. Issued 66,000 shares of the common stock at $12 cash per share. b. Reacquired 2,600 shares at $15 cash per share from stockholders; the shares are now held in treasury. C. Reissued 1,300 of the shares in transaction (b) two months later at $18 cash per share. References 2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Check my work 2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Part 2 of 3 View transaction list points Journal entry worksheet 2 3 eBook References Record the issuance of 66,000 shares of common stock with a par value $10 for a price of $12 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Check my work Required information [The following information applies to the questions displayed below.] Part 3 of 3 Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,800, declared no dividends, and the following selected transactions occurred in the order given: 2 points eBook a. Issued 66,000 shares of the common stock at $12 cash per share. b. Reacquired 2,600 shares at $15 cash per share from stockholders; the shares are now held in treasury. C. Reissued 1,300 of the shares in transaction (b) two months later at $18 cash per share. References 3. Prepare the stockholders' equity section of the balance sheet at December 31. TIP: Because this is the first year of operations, Retained Earnings has a zero balance at the beginning of the year. (Amounts to be deducted should be indicated by a minus sign.) Check my work L. Reissueu JUU UILIIE SICIES III LI alisaLLUITIV LVVU TIIVIILI IS Talei al DIO LASI pei siiaie. Part 3 of 3 3. Prepare the stockholders' equity section of the balance sheet at December 31. TIP: Because this is the first year of operations, Retained Earnings has a zero balance at the beginning of the year. (Amounts to be deducted should be indicated by a minus sign.) points WORLDWIDE COMPANY Balance Sheet (Partial) At December 31 Stockholders' Equity eBook References Contributed Capital: Total Contributed Capital Total Total Stockholders' Equity