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    Brady3's Avatar
    Brady3 Posts: 2, Reputation: 1
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    #1

    May 11, 2013, 08:14 AM
    Find net income
    I need to find the return on investment ratio but in order to find that I need the net income but am not sure how to find the net income with this information:

    Assets

    Cash 15,400
    Marketable securities 7,580
    Accounts receivable 12,800
    Inventory 11,200
    Property and equipment 166,000
    Accumulated depreciation 12,600

    Total assets 200,380

    Liabilities and stockholders’ equity

    Accounts payable 8,990
    Current notes payable 3,640
    Mortgage payable 4,550
    Bonds payable 21,900
    Common stock 114,100
    Retained earnings 47,200

    Total liabilities and stockholders’ equity 200,380

    The average number of common stock shares outstanding during 2011 was 890 shares. Net income for the year was $14,100.
    Brady3's Avatar
    Brady3 Posts: 2, Reputation: 1
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    #2

    May 11, 2013, 08:18 AM
    Well I messed this up by posting the answer in this
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    May 11, 2013, 10:47 AM
    Your problem does not say what year of operations your balance sheet covers. Also you will need other information like dividends declared or paid during the year and additional shares of common stock issued during the period.

    Based purely on the information provided simply subtract your net income for the previous year from retained earnings to get your answer. Unless there is additional information.

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