The following selected data were taken from the financial statements of Preslar Inc. for December 31, 2012,

Question:

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

The following selected data were taken from the financial statements 115912

The 2012 net income was $435,750, and the 2011 net income was $453,750. 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?

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... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...