Question
Pacific Fixtures lists the following accounts as part of its balance sheet. Total assets $10,000,000 Accounts payable $ 800,000 Notes payable (8%) 1,000,000 Bonds (10%)
Pacific Fixtures lists the following accounts as part of its balance sheet. Total assets $10,000,000 Accounts payable $ 800,000 Notes payable (8%) 1,000,000 Bonds (10%) 3,200,000 Common stock at par 1,100,000 Contributed capital in excess of par 500,000 Retained earnings 3,400,000 Total liabilities and stockholders equity $10,000,000 Compute the return on stockholders equity if the company has sales of $20 million and the following net profit margin: 3 percent. Round your answer to one decimal place. 12.2 % 7 percent. Round your answer to one decimal place. %
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