timer Asked: Jun 22nd, 2013

Question Description

Can you help me understand this Business question?


Financial Accounting: Tools for Business Decision

Prepare responses to the
following assignment from the e-text.Ch. 11: Decision
Making Across the Organization BYP11-7—page 581.


BYP11-7 In recent years the
fast-food chain Wendy’s International has purchased manytreasury shares. From January 3, 1999, to December 30,2001, the number of shares outstanding has fallen from 124 million to 105 million. The following information was drawn from the company’s financial statements (in millions).

Year ended 
                                                                         Dec. 30, 2001      Jan. 3, 1999

Net income                                                           $ 193.6             $123.4

Total assets                                                          2,076.0           1,837.9

Average total assets                                             2,016.9          1,889.8

Total common stockholders’ equity                      1,029.8           1,068.1

Average common stockholders’ equity                 1,078.0           1,126.2

Total liabilities                                                        1,046.3            769.9

Average total liabilities                                            939.0               763.7

Interest expense                                                      30.2                 19.8

Income taxes                                                          113.7               84.3

Cash provided by operations                                  305.2             233.8

Cash dividends paid on common stock                  26.8                31.0

Preferred stock dividends                                       0                      0

Average number of common shares outstanding   109.7            119.9


Use the information provided to answer the following

(a) Compute earnings per share, return on common stockholders’ equity, and return on
assets for both years. Discuss the change in the company’s profitability over this

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors