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80. Crasler Company's net income last year was $100,000. The company paid preferred dividends of $20,000 and its average common stockholders' equity was $580,000. The company's return on common stockholders' equity for the year was closest to:
A) 13.8%. C) 20.7%.
B) 3.4%. D) 17.2%.

83. Grave Company had $150,000 in sales on account last year. The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $10,000. The company's average collection period (age of receivables) was closest to:
A) 24.33 days. C) 34.07 days.
B) 58.40 days. D) 29.20 days.

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1. The return on equity is calculated as the amount left for the equityholders divided by the total equity value. The ...

Solution Summary

The solution explains the calculation of return on equity and average collection period