What is the return on common stockholders equity for company

Assignment Help Managerial Accounting
Reference no: EM132794527

The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets

Cash and short-term investments $ 40,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets $295,000

Liabilities and Stockholders' Equity

Current liabilities $ 60,000
Long-term liabilities 85,000
Stockholders' equity-common 150,000
Total Liabilities and Stockholders' Equity $295,000
Income Statement
Sales revenue $ 85,000
Cost of goods sold 45,000
Gross margin 40,000
Operating expenses 20,000
Net income $ 20,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock 0.90
Cash provided by operations $30,000

Problem 1: What is the return on common stockholders' equity for this company?

Reference no: EM132794527

Questions Cloud

What is the after-tax cash inflow from the sale : What is the after-tax cash inflow from the sale of the old machine at time 0? and What is the tax liability created by the sale of the new machine at the end
Calculate Sharon pension adjustment : Sharon contributes 5% of her annual earnings of $40,000.00 to her defined contribution pension plan. Calculate Sharon's pension adjustment
Calculate the dividends to be declared : 12 Co wants to declare $10,000 of dividends in total for 2020. Calculate the dividends to be declared for 2020 to preferred versus common shareholders.
Explain qualitative tools and quantitative tools : What is the difference between qualitative tools versus quantitative tools? Select and summarize the purpose of ONE Qualitative Tool
What is the return on common stockholders equity for company : What is the return on common stockholders' equity for this company? Cash and short-term investments $ 40,000. Accounts receivable (net) 25,000
Measure the performance of the new product or service : Recommend some metrics that could be used to measure the performance of the new product or service.
Calculate the dollar amount of the labor efficiency variance : Ackerman's Garage uses standards to plan and control labor time and expense. Calculate the dollar amount of the labor efficiency variance
Difference between passenger aircrafts-combi : Q1. What are the major difference between passenger aircrafts, combi and full cargo Freighters?
What were the main points of the writing : What were the main points of the writing? What were the differences and similarities between what you read and what was written about the individual.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd