Woldenga Consulting Ltd. reported the figures shown below for 2020 and 2019: Required 1. Compute the return
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Woldenga Consulting Ltd. reported the figures shown below for 2020 and 2019:
Required
1. Compute the return on total assets (ROA) and the return on common shareholders’ equity (ROE) for 2020. Round your answers to two decimal places.
2. Do these rates of return suggest strength or weakness? Give your reasons.
Transcribed Image Text:
2020 2019 Income statement Interest expense $ 5,200 $ 3,700 Net income 3,250 5,200 Balance sheet Total assets 105,000 95,000 Preferred shares, $1.15, 200 shares issued and outstanding 1,000 1,000 Common shareholders' equity 46,700 43,000 Total shareholders' equity 47,700 44,000
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Related Book For
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood
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