Response to the following problem:
The balance sheet for Schultz Bone Company at December 31, 2009 had the following account balances:
Total current liabilities (non-interest-bearing) .......................$450,000
Bonds payable, 6% (issued in 1982; due in 2013) ....................750,000
Preferred stock, 5%, $100 par ...........................................300,000
Common stock, $10 par ..................................................750,000
Premium on common stock .............................................150,000
Retained earnings .........................................................600,000
Income before income tax was $200,000, and income taxes were $80,000 for the current year.
Required :
Calculate each of the following:
a. Return on assets (using ending assets)
b. Return on total equity (using ending total equity)
c. Return on common equity (using ending common equity)
d. Times interest earned.