Compute the return on common stock equity


The following information pertains to Allbright, Inc.
Cash $75,000
Accounts receivable 190,000
Inventory 130,000
Plant assets (net) 650,000
Total assets $1,045,000

Accounts payable $140,000
Accrued taxes and expenses payable 32,000
Long-term debt 165,000
Common stock ($10 par) 265,000
Paid-in capital in excess of par 120,000
Retained earnings 495,000
Total equities $1,045,000

Net sales (all on credit) $1,800,000
Cost of goods sold $1,200,000
General & Admin Expenses $430,000
Net income $170,000

Required
Compute the following: (It is not necessary to use averages for any balance sheet figures involved.)
(a) Current ratio
(b) Inventory turnover
(c) Receivables turnover
(d) Book value per share
(e) Earnings per share
(f) Debt to total assets
(g) Profit margin on sales
(h) Return on common stock equity

 

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Accounting Basics: Compute the return on common stock equity
Reference No:- TGS059388

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