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How do I get the return on total assets from the information I attached below? Comparative financial statements for Heritage Antiquing Services for the fiscal
How do I get the return on total assets from the information I attached below?
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 600 thousand shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company's common stock at the end of the year was $26. All of the company's sales are on account. Heritage Antiquing Services Comparative Balance Sheet (dollars in thousands) This Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholder s' Equity Current liabilities: Accounts payable Accrued payables Notes payable, short term 1,080 Last Year $ 1,210 9,000 6,500 12,000 10,600 600 500 22,680 18,810 9,000 9,000 36,800 38,000 45,800 47,000 $ 68,480 $ 65,810 $ 18,500 $ 17,400 900 700 - 100 Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholder s' equity: Preferred stock Common stock Additional paid-in capital Total paid-in capital Retaine d earnings Total stockholders' equity Total liabilities and stockholders' equity Sales Cost of goods sold Gross margin Selling and administrativ $ 19,400 18,200 8,000 8,000 27,400 26,200 1,000 1,000 2,000 2,000 4,000 4,000 7,000 7,000 34,080 32,610 41,080 39,610 68,480 $ 65,810 Heritage Antiquing Services Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $ 66,000 $ 64,000 43,000 42,000 23,000 22,000 e expenses: Selling expenses Administrati ve expenses Total selling and administrativ e expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to preferred stockholders Net income remaining for common stockholders Dividends to common stockholders Net income added to retained earnings Retained earnings, beginning of year Retained earnings, end of year $ 11,500 11,000 7,400 7,000 18,900 18,000 4,100 4,000 800 800 3,300 3,200 1,320 1,280 1,980 1,920 60 400 1,920 1,520 450 450 1,470 1,070 32,610 31,540 34,080 $ 32,610Step by Step Solution
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