Homework

Total current liabilities (non-interest-bearing)                                                              $450,000

Bonds payable, 6% (issued in 1982; due in 2010)                                                        750,000

Preferred stock, 5%, 100 par                                                                                          300,000

Common stock, $10 par                                                                                                 750,000

Premium on common stock                                                                                            150, 000

Retained earnings                                                                                                           600,000       

Income before income tax was $200,000, and income taxes were $80,000 for the current year.

Required:

Calculate each of the following:

a. Return on assets (using ending assets)

b. Return on total equity (using ending total equity)

c. Return on common equity (using ending common equity)

d. Times interest earned