The following selected data were taken from the financial statements of The Sigemund Group Inc. for December

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The following selected data were taken from the financial statements of The Sigemund Group Inc. for December 31, 2010, 2009, and 2008:

December 31 2010 2009 2008 Total assets Notes payable (10% interest) Common stock Preferred $6 stock, $100 par (no chang

The 2010 net income was $242,000, and the 2009 net income was $308,000. No dividends on common stock were declared between 2008 and 2010.

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 2009 and 2010. Round to one decimal place.

b. What conclusions can be drawn from these data as to the company’s profitability?


Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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