In 2017 Spanish Fort Corporation had net sales of $500000 and cost of goods sold of $300000. Operating expenses were $93000 and interest expense was $7500. The corporation's tax rate is 30%. The corporation declared preferred dividends of $7000 in 2017 and its average common stockholders' equity during the year was $500000.
Instructions
(a) Prepare an income statement for Spanish Fort Corporation.
(b) Compute Tubb Corporation's return on common stockholders' equity for 2017.

Question

Quizplus · Accepted Answer

The Answer of In 2017 Spanish Fort Corporation had net sales of $500000 and cost of goods sold of $300000. Operating expenses were $93000 and interest expense was $7500. The corporation's tax rate is 30%. The corporation declared preferred dividends of $7000 in 2017 and its average common stockholders' equity during the year was $500000.
Instructions
(a) Prepare an income statement for Spanish Fort Corporation.
(b) Compute Tubb Corporation's return on common stockholders' equity for 2017.

In 2017 Spanish Fort Corporation Had Net Sales of $500000