Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help solve gross profit rate and return on common stockholders' equity Balance Sheet October 31, 2024 Assets Current Assets Cash $29,645 Accounts receivable 2.990

please help solve gross profit rate and return on common stockholders' equity image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Balance Sheet October 31, 2024 Assets Current Assets Cash $29,645 Accounts receivable 2.990 Inventory 16,466 Prepaid Rent Property, Plant, and Equipment Equipment. Accumulated depreciation-equipment Total assets Current Liabilities Accounts payable income tax payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Long-term Liabilities Note payable-long-term portion Total liabilities Stockholders' Equity Paid-in capital $5,325 17.020 644 2,070 230 3,680 $28,969 34.4895.520 Preferred stock, 2,576 shares issued and outstanding $12,880 Common stock, 23,858 shares issued, 23,168 outstanding Retained earnings Total paid-in capital and retained earnings Less; Treasury stock-common ( 690 shares), at cost Total stockholders'equity Total liabilities and stockholders' equity 23,858 36,738 103,53066,792 1(460) $137.559103,070 NetsalesCostofgoodssoldGrossprofit$425,500212,750212.750 Operating expenses Salaries and wages expense $85,100 Depreciation expense 9,062 Other expenses Interest expense Income before income tax 85,100506 Income taxexpense $68,08017,020 Additional information: Natalie and Curtis are thinking about borrowing an additiona $20.000 to buy more equipment. The loan would be repaid over a 4 year period. The terms of the loan provide for equal semiannual instaliment payments of $2.500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance. Dividends on preferred stock were $1,400. Since this is the first year of operations and the beginning balances are zero, use the ending balance as the average balance where appropriate. 6. Gross profit rate 10. Return on common stockholders' equity

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

Management Accounting

Authors: Pauline Weetman

2nd Edition

0273718452, 978-0273718451

More Books

Students also viewed these Accounting questions