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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago, 4 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Evaluating profitability
| Â |
2012 |
2011 |
|
Income Statement—partial: |
 |  |
|
Interest expense |
12,400,000 |
17,400,000 |
|
Net Income |
17,900,000 |
19,100,000 |
| Â |
2012 |
2011 |
|
Balance Sheet—partial: |
 |  |
|
Total assets |
$ 328,000,000 |
$ 318,000,000 |
|
Preferred stock, $2, no-par, 150,000 shares authorized, issued and outstanding |
$ 2,400,000 |
$ 2,400,000 |
|
Common stockholders’ equity |
178,000,000 |
171,000,000 |
|
Retained earnings |
4,000,000 |
3,000,000 |
|
Total stockholders’ equity |
$ 184,400,000 |
$ 176,400,000 |
Requirements
1.Compute rate of return on total assets and rate of return on common stockholders’ equity for 2012.
2.Do these rates of return suggest strength or weakness? Give your reason.
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