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%.