ACCT 3140 Sp24 Case 1 Ratio Analysis Selected comparative statement data for Clare and Nick Company...

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ACCT 3140 Sp24 Case 1 Ratio Analysis Selected comparative statement data for Clare and Nick Company are presented here. All balance sheet data are as of December 31. Net sales Net income Total assets Preferred stock (5%) Total stockholders' equity 2022 2021 $120,000 $112,000 15,000 14,000 80,000 70,000 20,000 20,000 60,000 50,000 Required: Compute the following ratio for 2022 Return on common stockholders' equity = [net income - preferred dividends] / [average common stockholders' equity] ACCT 3140 Sp24 Case 1 Ratio Analysis Selected comparative statement data for Clare and Nick Company are presented here. All balance sheet data are as of December 31. Net sales Net income Total assets Preferred stock (5%) Total stockholders' equity 2022 2021 $120,000 $112,000 15,000 14,000 80,000 70,000 20,000 20,000 60,000 50,000 Required: Compute the following ratio for 2022 Return on common stockholders' equity = [net income - preferred dividends] / [average common stockholders' equity]

Answer rating: 100% (QA)

To compute the Return on Common Stockholders Equity ratio for 2022 we need to calculate the average ... View the full answer