2A2R FOR THE YEAR JUST ENDED, BEECHWOOD CORPORATION HAD INCOME FROM O...
65.
CSO: 2A2d
LOS: 2A2r
For the year just ended, Beechwood Corporation had income from operations of
$198,000 and net income of $96,000. Additional financial information is given below.
January 1
December 31
7% bonds payable
$95,000
$77,000
Common stock ($10 par value)
300,000
300,000
Reserve for bond retirement
12,000
28,000
Retained earnings
155,000
206,000
Beechwood has no other equity issues outstanding. Beechwood’s return on shareholders’
equity for the year just ended is
a.
19.2%.
b.
19.9%.
c.
32.0%.
d.
39.5%.