Exercise 15-19 Shown below is the liabilities and stockholders' equity section of the balance sheet for Flounder Company and Culver Company. Each has assets totaling $4,187,000. Flounder Co. Current liabilities Long-term debt, 10% Common stock ($20 par) Retained earnings (Cash dividends, $206,000) $315,000 1,280,000 1,920,000 672,000 $4,187,000 CulverCo. Current liabilities Common stock ($20 par) Retained earnings (Cash dividends, $331,000) $425,000 3,090,000 672,000 $4,187,000 For the year, each company has earned the same income before interest and taxes. Culver Co. $1,200,000 Income before interest and taxes Interest expense Flounder Co. $1,200,000 128,000 1,072,000 482,400 $589,600 Income taxes (45%) Net income 1,200,000 540,000 $660,000 At year end, the market price of Flounder's stock was $101 per share, and Culver's was $63.50. Assume balance sheet amounts are representative for the entire year. (a) Calculate the return on total assets? (Round answers to 2 decimal places, e.g. 16.85%.) Return on total assets Flounder Company (a) Calculate the return on total assets? (Round answers to 2 decimal places, e.g. 16.85%.) Return on total assets Flounder Company Culver Company Which company is more profitable in terms of return on total assets? (b) Calculate the return on common stock equity? (Round answers to 2 decimal places, e.g. 16.85%.) Return on common stock equity Flounder Company Culver Company Which company is more profitable in terms of return on common stockholders' equity? (c) Calculate the Net income per share. (Round answers to 2 decimal places, e.g. $6.85.) Net income per share Flounder Comnany Net income per share Flounder Companys Culver Company Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year. (d1) From the point of view of net income, is it advantageous to the stockholders of Flounder Co. to have the long-term debt outstanding? (e) What is the book value per share for each company? (Round answers to 2 decimal places, e.g. $6.85.) Book value per share Flounder Companys Culver Company Click if you would like to Show Work for this question: Open Show Work