1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
QveST [7]
3 years ago
15

Mann Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January

1, 2017. The following information is available for the company for 2016 and 2017. 2017 2016 Net income $120,000 $100,000 Average stockholder's equity 1,000,000 800,000 Total assets 1,200,000 1,200,000 Current liabilities 100,000 100,000 Total liabilities 360,000 480,000 (a) Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 10.2%.) 2017 2016 Return on common stockholders' equity % %
Business
1 answer:
Yuri [45]3 years ago
5 0

Answer:

Return on equity in 2017 is 12% while that of 2016 is 12.5%

Explanation:

The formula for return on equity is given as net income/equity.

The net income is $120000 for 2017 and $100000 for 2016.

Shareholders' average equity is 1000000 shares in 2017 and 800000 shares in 2016.

                                                              2017                                  2016

Return on equity                            120000/1000000             100000/800000

Return on equity                             0.12                                     0.125

The return on equity is 12.0% in 2017 and 12.5% in 2016.

From all indications, the issue of additional shares to the tune of $120000  lead to a reduction in return on equity in 2017 by 0.5%

You might be interested in
A company purchased new equipment for $48,000. The company paid cash for the equipment. Other costs associated with the equipmen
brilliants [131]

Answer:

The cost recorded will be $53,400

Explanation:

In this question, we are to give the value of the amount recorded as the cost of the new equipment.

By simply doing some additions, we will be okay.

mathematically, this would be

Cost of equipment recorded = cost of equipment + transportation cost + sales tax + installation cost = 48,00 + 1,200 + 2,500 + 1,700 = $53,400

4 0
3 years ago
The striking dock workers on the west coast refused to unload the ships carrying merchandise for retail stores. These stores suf
son4ous [18]

Answer:

indirect loss, cannot be

Explanation:

Indirect losses refers to a type of loss that incurred outside of circumstances that usually occur in normal operation. (such as loss because the government created a certain type of law or loss because people are conducting strikes on other areas of our business)

Insurance companies can't cover Indirect losses because these costs tend to be really unpredictable and extremely hard to be measured .  They will specify that they wouldn't cover these types of loss during the initial cotnract.

4 0
3 years ago
How do you find tax liability from taxable income?
ycow [4]

Answer:

How to calculate tax liability from taxable income

Explanation:

Your taxable income minus your tax deductions equals your gross tax liability. Gross tax liability minus any tax credits you're eligible for equals your total income tax liability. hope this helps you :)

7 0
3 years ago
There is a tenants' meeting in an apartment complex. Who goes to that meeting?
jarptica [38.1K]
The tenants go to the meeting
4 0
3 years ago
Supply chain management refers to a relatively new business phenomenon meaning:
inna [77]
The administration of upstream and downstream association's with providers and clients to convey better incentive at less cost than the inventory network all in all.
8 0
3 years ago
Other questions:
  • Milano Gallery purchases the copyright on an oil painting for $300,000 on January 1, 2017. The copyright legally protects its ow
    9·1 answer
  • Based on what you have learned in the lesson and the assignment, write two or three sentences describing how short-term and long
    9·2 answers
  • Fred, a department manager, is attending the monthly budget planning meeting, where all the department managers report on their
    5·1 answer
  • Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contribu
    5·1 answer
  • Wyatt is a businessman. He often travels to different places for business purposes and spends money on hotel stays and get-toget
    15·2 answers
  • Which of the following items is not a temporary difference? A. Vacation pay accrued for tax purposes in a prior period is deduct
    13·1 answer
  • The manager of the customer service division of a major consumer electronics company is interested in determining whether the cu
    13·1 answer
  • Is anyone gonna help I posted the same thing 3 times and no one will help. Ive been stuck in my room for days trying to get this
    6·2 answers
  • Why does the government oversee the provision of public goods?
    5·1 answer
  • The international agency that administers trade agreements, facilitates trade negotiations, and helps to resolve trade disputes,
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!