In 2015 Pennington Corporation had net sales of 600 000 and
In 2015, Pennington Corporation had net sales of $600,000 and cost of goods sold of $360,000. Operating expenses were $153,000, and interest expense was $7,500. The corporation's tax rate is 30%. The corporation declared preferred dividends of $15,000 in 2015, and its average common stockholders' equity during the year was $200,000.

Instructions
(a) Prepare an income statement for Pennington Corporation.
(b) Compute Pennington Corporation's return on common stockholders' equity for 2015.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help