Required: 

1. Compute the return on total assets. (Round your answer to 1 decimal place.)

 2. Compute the return on common shareholders' equity.

Transcribed Image Text:

Selected financial data from the June 30 year-end statements of Safford Company follow. Total assets Long-term debt (12% interest rate) Preferred shares, $100 par, Total shareholders equity Interest paid on long-term debt Net income $ 3,530,000 $10,000 920,000 2,400,000 61,200 278,000 Total assets at the beginning of the year were $2,990,000; total shareholders' equity was $2.180,000. There has been no change in the preferred shares during the year. The company's tax rate is 30% Selected financial data from the June 30 year-end statements of Safford Company follow. Total assets Long-term debt (12% interest rate) Preferred shares, $100 par, Total shareholders equity Interest paid on long-term debt Net income $ 3,530,000 $10,000 920,000 2,400,000 61,200 278,000 Total assets at the beginning of the year were $2,990,000; total shareholders' equity was $2.180,000. There has been no change in the preferred shares during the year. The company's tax rate is 30%

Answer rating: 100% (QA)

1 Return on Total Assets Return on Total Assets Average Total Assets Total Assets at the Beginning o... View the full answer