eBook ( Show Me How Calculator Print Item Calculating the Average Common Stockholders' Equity and the Return on Stockholders' Equity The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Somerville Company Income Statement For the Year Ended December 31, 20X2 Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Operating income Less: Interest expense Amount $8,281,989 (5,383,293) $2,898,696 (1,323,368) $1,575,328 (50,000) $1,525,328 (610,131) Percent 100.0% 65.0 35.0 16.0 19.0 0.6 Income before taxes Less: Income taxes (40%) 18.4 7.4 Net income $915,197 11.0 Includes both state and federal taxes. Somerville Company Statement of Retained Earnings For the Year Ended December 31, 20x2 Balance beginning of period $1,979,155 Calculator Print Item Somerville Company Statement of Retained Earnings For the Year Ended December 31, 20x2 Balance, beginning of period $1,979,155 Net income 915,197 Total $2,894,352 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period $2,612,465 Somerville Company Comparative Balance Sheets At December 31, 20X1 and 20x2 20x1 20X2 Assets Current assets: Cash Marketable securities Accounts receivable (net) $2,875,000 800,000 939,776 490,000 93,000 $5.192.776 $2,580,000 700,000 690,000 260,000 74,261 $4304261 Inventories Other Total current assets Check My Work a eBook Show Me How Calculator Print Item Somerville Company Comparative Balance Sheets At December 31, 20X1 and 20x2 20x1 20X2 Assets Current assets: Cash Marketable securities Accounts receivable (net) $2,875,000 800,000 939,776 490,000 $2,580,000 700,000 690,000 260,000 74,261 Inventories Other Total current assets $5,197,776 $4,304,261 Property and equipment: Land Building and equipment (net) Total long-term assets Total assets $1,575,000 1,348,800 $2,923,800 $8,121,576 $1,067,315 1,150,000 $2,217,315 $6,521,576 Liabilities and stockholders' equity Current liabilities: Notes payable, short term Accounts payable Current maturity of long-term debt $1,170,127 303,584 3,000 543,641 106,600 2,000 Check My Work keAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=fals eBook Show Me How calculator Print Item $6,521,576 Total assets $8,121,576 Liabilities and stockholders' equity Current liabilities: Notes payable, short term $1,170,127 $ 543,641 303,584 Accounts payable Current maturity of long-term debt 106,600 2,000 57,780 $710,021 3,000 200,000 $1,676,711 Accrued payables Total current liabilities Long-term liabilities: Bonds payable, 10% 500,000 500,000 Total liabilities $2,176,711 $1,210,021 Stockholders' equity: Preferred stock, $25 par, 8% Common stock, $1.50 par Additional paid-in capital" $1,000,000 332,400 2,000,000 2,612,465 $5,944,865 $8,121,576 $1,000,000 332,400 2,000,000 1,979,155 $5,311,555 $6,521,576 Retained earnings. Total stockholders' equity Total liabilities and stockholders' equity - For common stock only, Required: 1. Calculate the average common stockholders' equity. Round to the nearest dollar 95 Rin only Check My Work 303,584 106,600 2,000 Accounts payable Current maturity of long-term debt Accrued payables Total current liabilities Long-term liabilities: 3,000 200,000 $1,676,711 57,780 $710,021 Bonds payable, 10% Total liabilities 500,000 $2,176,711 500,000 $1,210,021 Stockholders' equity: Preferred stock, $25 par, 8% Common stock, $1.50 par Additional paid-in capital* Retained earnings Total stockholders' equity Total liabilities and stockholders' equity * For common stock only. Required: $1,000,000 332,400 2,000,000 2,612,465 $5,944,865 $8,121,576 $1,000,000 332,400 2,000,000 1,979,155 $5,311,555 $6,521,576 1. Calculate the average common stockholders' equity. Round to the nearest dollar. $ 2,295,810.00 2. Calculate the return on stockholders' equity. Round your answer to two decimal places. X Check My Work