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The balance sheet for the Curl Up and Dye Salon at December 31, 2019 had the...

The balance sheet for the Curl Up and Dye Salon at December 31, 2019 had the following account balances:

Total current liabilities (non interest bearing) $550,000

Bonds payable, 7% 800,000

Preferred stock, 6% $100 par    200,000

Common stock, $10 par       450,000

Premium on common stock    250,000

Retained earnings       300,000

Income before tax was $400,000 and income taxes were $100,000 for the current year.

Calculate each of the following:

Return on assets (using ending assets)

Return on total equity (using ending total equity)

Return on common equity using ending common equity

Times interest earned

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Expert Solution

jeff jeffy answered 1 year ago
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