The following selected data were taken from the financial statements of The O’Malley Group Inc. for December 31, 2012, 2011, and 2010:

The 2012 net income was $430,000, and the 2011 net income was $320,000. No dividends on common stock were declared between 2010 and 2012.

a. Determine the rate earned on total assets, the rate earned on stockholders’ equity, and the rate earned on common stockholders’ equity for the years 2011 and 2012. Round to one decimal place.
b. What conclusions can be drawn from these data as to the company’sprofitability?

  • CreatedFebruary 04, 2014
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