The Following Information Is Available from the Balance Sheets at the End
Question 3
Question 3
Essay
The following information is available from the balance sheets at the end of 2018 and 2017 for Riverside Company: ? Accounts payable Accrued liabilities Taxes payable Short-term notes payable Bonds payable due within next year Total current liabilities Bonds payable Common stock $5 par Retained earnings aolders’ equity Total liabilities and stockhol ders’ equity 2018$80,00065,00010,0000200,000$355,000$800,000$1,000,000695,000$1,695,000$2,850,0002017$40,00025,00020,00060,000200,000$345,000$300,000$1,000,00055,000$1,055,000$1,700,000 Net income for 2018 and 2017 was $340,000 and $300,000,respectively.Answer the following: ? A) Calculate the return on common stockholders’ equity ratio for 2018. ? B) What information is provided to users with the cal culation in part (A) ? Explain. C) What is the difference between the return on stockholders' equity ratio and the return on assets ratio?