Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ayayai company manufactures backpacks. during 2022

Ayayai Company manufactures backpacks. During 2022, Ayayai issued bonds at 10% interest and used the...

60.1K

Verified Solution

Question

Accounting

image
image
Ayayai Company manufactures backpacks. During 2022, Ayayai issued bonds at 10% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Ayayai Company for the years 2022 and 2021. 2022 2021 Sales revenue $19,350,000 $19.350,000 Nt income 4,816.000 5,375,000 Interest expense 625,000 175,000 1,440,500 1,612,500 xpense 1,282,500 1.112,500 Dividends paid on common stock 375,000 375,000 Dividends paid on preferred stock 36.281,250 31.175,000 Total assets (year-end) 22.203.750 33,728.125 Average total assets 3,750.000 7.500,000 Total liabilities (year-end) 17.625.000 11.750,000 Avg. total common stockholders' equity Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, eg. 12.5% or 12.5.) 2022 2021 (1) Return on assets (2) Return on common stockholders' equity (3) Payout ratio (4) Debt to assets ratio 96 (5) Times interest earned times times

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students