Total assets, December 31, 2013 $499,148
Total assets, December 31,2014 580,682
Net Total assets =$1,079,830/2 = $539,915
Interest = $24,352
Net income = $64,734
Rate of return on total assets = Net income + Interest/ Total Net assets
=$64,734 + $24,352/$539,915
Rate of return on total assets% = 0.165*100=16.5%
Thank you so much for your prompt response to my free question.
I have another problem that I couldn't get into the correct solution, again I need some help with this problem:
Q: In 2015, its first year of operations Chesapeake Company had the following transactions in 2015.
• Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00 per share.
• Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par.
• Earned net income of $35,000.
• Paid no dividends.
· Paid Accounts Payable of $10,215
· Purchased a truck for $10,000. Signed a 5 year promissory note for the entire amount
· Hired a new Vice President on December 15 for a salary of $100,000. The Vice President begins employment on January 3, 2016
At the end of 2015, what is the total amount of stockholders' equity?Kindly help me with the solution to this problem.
Dear Professor Anjum,
I enrolled the gold pro membership for this class, I don't know how this work, but I already paid. I hope I can get my answer soon.
1.) A cash flow of $250,000 may be received by Lydia Nickels, Inc. in
one year, two years, or three years, with probabilities of 25%, 60%, and 35%,
respectively. The rate of interest on default risk-free investments is 6%. What is the expected present
value of Lydia Nickels' cash flow (in whole dollars)?
2.)Toro, Inc. paid $8,280 to renew its only insurance policy for
three years on March 1, year 1, the effective date of the policy. At March 31,
year 1, Toro's unadjusted trial balance showed a balance of $345 for prepaid
insurance and $8,280 for insurance expense. What amounts should be reported for
prepaid insurance and insurance expense in Toro's financial statements for the
three months ended March 31, year 1?
Jones, a consultant, keeps her accounting records on a cash basis. During year 2, Jones collected $140,000 in fees from clients. At December 31, year 1, Jones had accounts receivable of $24,000. At December 31, year 2, Jones had accounts receivable of $47,000, and unearned fees of $4,200. On an accrual basis, what was Ward's service revenue for year 2?Thanks.
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