Drop downs:
Cash 16,300 361,000 $ 50,000 Interest expense 27,000 Property, plant and equipment, net 29,000 Common stock, $1 par, 29,000 1,000,000 shares authorized, 92,000 110,000 shares issued 89,000 Prepaid expenses 4,000 Common stockholders' equity, ? December 31, 2017 135,000 Net income Accounts receivable, net Paid-in capital in excess of par-common Accrued liabilities Long-term note payable Inventory Dividends payable Retained earnings Accounts payable 110,000 14,000 221,000 20,000 1. Prepare Dove's classified balance sheet in the account format at December 31, 2018. 2. Use a DuPont Analysis to calculate rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2018. 3. Do these rates of return suggest strength or weakness? Give your reason. What additional information might help you make your decision? The following accounts and related balances of Dove Designers, Inc., as of December 31, 2018, are arranged in no particular order: (Click the icon to view the account information.) Read the fequirements Requirement 1. Prepare Dove's classified balance sheet in the account format at December 31, 2018. Start by completing the Assets section of the statement, and then prepare the Liabilities and Stockholders' Equity sections of the statement. (Classify the balance sheet by selecting the proper title on all applicable subtotal lines. In the first part complete the assets section of the balance sheet. In the second part complete the liabilities and stockholders' equity section of the balance sheet. Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Dove Designers, Inc. Balance Sheet December 31, 2018 Assets Liabilities Stockholders' Equity par par, shares shares shares shares Total assets Total liabilities and stockholders' equity Requirement 2. Use a DuPont analysis to calculate rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2018. Start by calculating the rate of return on total assets (ROA). Select the DuPont model formula needed and then enter the amounts to calculate ROA. (Ignore Interest Expense in the ROA calculation. Dividends are not preferred. Round percentages to one decimal place, X.X% and other component ratios to three decimal places, X.XXX.) ROA % X % Calculate the rate of return on common stockholders' equity (ROE). Select the DuPont model formula needed and then enter the amounts to calculate ROE. (Ignore Interest Expense in the ROA calculation. Dividends are not preferred. Round percentages to one decimal place, X.X% and other component ratios to three decimal places, X.XXX.) ROE % x % Requirement 3. Do these rates of return suggest strength or weakness? Give your reason. What additional information might help you make your decision? These rates of return appear to be because What additional information might help you make your decision? (If a box is not used in the table, leave the box empty; do not make a selection.) These rates of return appear to be because What additional information might h strong weak These rates of return appear to be because What additional information might help you make your lec both ratios are low and return on equity is greater than return on assets. both ratios are high and return on equity is greater than return on assets. both rates are low and return on equity is less than return on assets. Cash 16,300 361,000 $ 50,000 Interest expense 27,000 Property, plant and equipment, net 29,000 Common stock, $1 par, 29,000 1,000,000 shares authorized, 92,000 110,000 shares issued 89,000 Prepaid expenses 4,000 Common stockholders' equity, ? December 31, 2017 135,000 Net income Accounts receivable, net Paid-in capital in excess of par-common Accrued liabilities Long-term note payable Inventory Dividends payable Retained earnings Accounts payable 110,000 14,000 221,000 20,000 1. Prepare Dove's classified balance sheet in the account format at December 31, 2018. 2. Use a DuPont Analysis to calculate rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2018. 3. Do these rates of return suggest strength or weakness? Give your reason. What additional information might help you make your decision? The following accounts and related balances of Dove Designers, Inc., as of December 31, 2018, are arranged in no particular order: (Click the icon to view the account information.) Read the fequirements Requirement 1. Prepare Dove's classified balance sheet in the account format at December 31, 2018. Start by completing the Assets section of the statement, and then prepare the Liabilities and Stockholders' Equity sections of the statement. (Classify the balance sheet by selecting the proper title on all applicable subtotal lines. In the first part complete the assets section of the balance sheet. In the second part complete the liabilities and stockholders' equity section of the balance sheet. Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Dove Designers, Inc. Balance Sheet December 31, 2018 Assets Liabilities Stockholders' Equity par par, shares shares shares shares Total assets Total liabilities and stockholders' equity Requirement 2. Use a DuPont analysis to calculate rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2018. Start by calculating the rate of return on total assets (ROA). Select the DuPont model formula needed and then enter the amounts to calculate ROA. (Ignore Interest Expense in the ROA calculation. Dividends are not preferred. Round percentages to one decimal place, X.X% and other component ratios to three decimal places, X.XXX.) ROA % X % Calculate the rate of return on common stockholders' equity (ROE). Select the DuPont model formula needed and then enter the amounts to calculate ROE. (Ignore Interest Expense in the ROA calculation. Dividends are not preferred. Round percentages to one decimal place, X.X% and other component ratios to three decimal places, X.XXX.) ROE % x % Requirement 3. Do these rates of return suggest strength or weakness? Give your reason. What additional information might help you make your decision? These rates of return appear to be because What additional information might help you make your decision? (If a box is not used in the table, leave the box empty; do not make a selection.) These rates of return appear to be because What additional information might h strong weak These rates of return appear to be because What additional information might help you make your lec both ratios are low and return on equity is greater than return on assets. both ratios are high and return on equity is greater than return on assets. both rates are low and return on equity is less than return on assets
