The following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations:
The Year 3 net income was $242,000 and the Year 2 net income was $308,000.No dividends on common stock were declared during the 3 years.
a Determine the rate earned on assets, the rate earned on stockholders' equity, and the rate earned on common stockholders' equity for Years 2 and 3.Round to one decimal place.
b What conclusion can be drawn from these data as to the company's profitability?

Question

The following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations:
  The Year 3 net income was $242,000 and the Year 2 net income was $308,000.No dividends on common stock were declared during the 3 years.
a Determine the rate earned on assets, the rate earned on stockholders' equity, and the rate earned on common stockholders' equity for Years 2 and 3.Round to one decimal place.
b What conclusion can be drawn from these data as to the company's profitability?

Quizplus · Accepted Answer

The Answer of The following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations:
  The Year 3 net income was $242,000 and the Year 2 net income was $308,000.No dividends on common stock were declared during the 3 years.
a Determine the rate earned on assets, the rate earned on stockholders' equity, and the rate earned on common stockholders' equity for Years 2 and 3.Round to one decimal place.
b What conclusion can be drawn from these data as to the company's profitability?

The Following Selected Data Were Taken from the Financial Statements