Formula: Add, Multiply, Divide, Subtract; Cell Referencing
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Using Excel to Calculate Shareholders' Equity Ratios						Student Work Area
PROBLEM		Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem or work areas as indicated.
RIngtone Inc. has the following selected financial data:
		2023	2022
	Net income	$ 720,000	$ 680,000
	Total assets	5,136,000	4,525,000			(a)	Calculate the following ratios for 2023.
	Preferred shares, cumulative	600,000	600,000
	Common shares	350,000	350,000			(1)	Rate of return on common shareholders' equity
	Retained earnings	2,786,000	2,190,000
	Accumulated other comprehensive income	145,000	130,000				Average common shareholders' equity
	Total shareholders' equity	3,881,000	3,270,000
	Cash dividends paid in the year	124,000	170,000				Preferred dividends
	Market price of common shares	97.46	64.33
	Weighted average number of common shares	80,000	80,000				Rate of return on common shareholders' equity
	Dividend rate on preferred shares	4%
						(2)	Payout ratio
There were no preferred dividends in arrears.
							Payout ratio
						(3)	Price earnings ratio
							Earnings per share
							Price earnings ratio			times
						(3)	Book value
							Book value per share
						(4)	Rate of return on total assets
							Rate of return on total assets
						(b)	Is Khalid Inc. trading on the equity?
							Because Khalid's
							exceeds its
							the company is