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  1. business
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  3. in 2014, spanish fort corporation had net sales of

In 2014, Spanish Fort Corporation had net sales of $500,000 and cost of goods sold...

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Question

Accounting

In 2014, Spanish Fort Corporation had net sales of $500,000 and cost of goods sold of $300,000. Operating expenses were $93,000, and interest expense was $7,500. The corporation's tax rate is 30%. The corporation declared preferred dividends of $7,000 in 2014, and its average common stockholders' equity during the year was $500,000.

Instructions

(a) Prepare an income statement for Spanish Fort Corporation.

(b) Compute the Spanish Fort Corporation's return on common stockholders' equity for 2014.

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