Question

Return on assets and return on common stockholders equity?

round to one decimal

Here are comparative statement data for Duke Company and Lord Company, two Duke Company Lord Company 2019 2020 2019 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings 2020 $1,878,000 1,100,508 261,042 9,390 54,462 329,000 519,900 | 65,400 108,800 $312,100 501,200 74,800 90,400 499,500 148,600 $559,000 296,829 79,937 4,472 6,149 83,200 139,800 34,200 30,200 120,500 38,100 $78,300 124,200 29,600 26,000 120,500 26,400 499,500 175,200

Answer 1

Any Computation of the 2020 return on Assets and the return on commm stockholder's equity creatios foro Both Company' o f Return on Assets - Net Income Average total Assets 3-452,598. ($329,000 18312,100 + $59.900+$501,900)/2 Duke Company & $452, 598 x 100 = 54.45% : $831,100 Lord Company $171.613 ($83,800 + $78,300+$ 139,800 44 lpy, goo 12 $171,613 x100 9212,750 a 2 80.66% - Return on Common Stockholders epjuity- Era Net Gocome bola Average Stockholden's equality

Duke Company - 1452, 5IB ($499, soo + $499, svo + $175,900 + $ 148,690) 12 x 100 : $452,598 $ 661,400 - 68.437 Thord Company - 171,613 ($120,500+ $140,500+$38,100 + $096,46712 : $171, 613 x100 $154,750 ? [112.34%) working at 1 Calmelation of Net Income for Both company Duke Company: $18.78.000 = $1,100,508 – $4610422 - $ 3390 - $54.462 :-/4452,598] Lood Company = $559,000 - $296,8229 - 479,337 - $4472 - $ 6,149 :- $ 171,613
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