Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: December 31 2016 2015 2014
The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014:
December 31 | |||||||
2016 | 2015 | 2014 | |||||
Total assets | $4,800,000 | $4,400,000 | $4,000,000 | ||||
Notes payable (8% interest) | 2,250,000 | 2,250,000 | 2,250,000 | ||||
Common stock | 250,000 | 250,000 | 250,000 | ||||
Preferred 4% stock, $100 par | |||||||
(no change during year) | 500,000 | 500,000 | 500,000 | ||||
Retained earnings | 1,574,000 | 1,222,000 | 750,000 |
The 2016 net income was $372,000, and the 2015 net income was $492,000. No dividends on common stock were declared between 2014 and 2016.
a. Determine the rate earned on total assets, the rate earned on stockholders' equity, and the rate earned on common stockholders' equity for the years 2015 and 2016. Round to one decimal place.
2016 | 2015 | |
Rate earned on total assets | % | % |
Rate earned on stockholders' equity | % | % |
Rate earned on common stockholders' equity | % | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started