Lofty Exploration Company reported these figures for 2012 and 2011: Requirements 1. Compute rate of return on
Question:
![2012 2011 Income Statement-partial: Interest expense 12,400,000 17,400,000 Net Income 17,900,000 19,100,000 2012 2011 Ba](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images4/69-B-A-B-S-C-F(562).png)
Requirements
1. Compute rate of return on total assets and rate of return on common stockholders equity for 2012.
2. Do these rates of return suggest strength or weakness? Give yourreason.
Transcribed Image Text:
2012 2011 Income Statement-partial: Interest expense 12,400,000 17,400,000 Net Income 17,900,000 19,100,000 2012 2011 Balance Sheet-partial: $ 328,000,000 $ 318,000,000 Total assets Preferred stock, $2, no-par, 150,000 shares authorized, issued and outstanding Common stockholders' equity Retained carnings Total stockholders' cquity $ 2,400,000 2,400,000 171,000,000 178,000,000 4,000,000 $ 184,400,000 3,000,000 $ 176,400,000
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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