Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please do the full and correct Current Atverrat in Dregrest dectiol place, 4 a5: 2%. Reiurenanacis 1i. Dividerst porout ratia : Wh. Heburn an common

please do the full and correct
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Current Atverrat in Dregrest dectiol place, 4 a5: 2%. Reiurenanacis 1i. Dividerst porout ratia : Wh. Heburn an common sharehelders' enaty eTreqbook and Modia List of fccourits inchere) Froind onswer fo 1 decimal plack e \& is 24 ) incone: Round artwer to 1 decima placi es 152k ) etertbock and Media List of Accounts arefternd sharen riextbook and Media View Policies Current Attempt in Progress Windmere Corporation's statement of financial position at December 31, 2020, appears as follows: For the year just ended, Windmere reported net income of $498,600. During the year, the company declared preferred dividends of $34,972 and common dividends of $319,034. Calculate, using year-end amounts for assets and shareholders' equity, the following ratios for Windmere: (Round onswers to 1 decimal place, e. 15.2\%): i. Return on assets, using net income in the calculation Return on assets $ ii. Dividend payout ratio Dividend payout ratio iii. Return on common shareholders' equity Assume that the company issued $1,400,000 of common shares at the beginning of 2020 and paid off the long-term debt. By repaying the long-term debt and not incurring any interest expense, the company's net income increased by $68,000. i. What would the return on common shareholders' equity be? (Hint: Remember that shareholders' equity is affected by net income.) (Round answer to 1 decimal ploce, eg. 15.2\%.) eTextbook and Media List of Accounts Assume that the long-term debt remains as shown on the statement of financial position and that the company issued an additional $710,000 of common shares at the beginning of 2020 . The company used the proceeds to redeem and cancel the preferred shares. i. What would the return on common shareholders' equity be? (Round answer to 1 decimal place, eg. 15.5\%.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham

7th Canadian Edition

133138445, 978-0133926330, 133926338, 978-0133138443

More Books

Students also viewed these Accounting questions