Wildhorse Medical manufactures hospital beds and other institutional furniture.

Question

Wildhorse Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 fo Wildhorse Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts receivable, net Inventory Other current assets $417,450 776,450 681,100 247,000 2,122,000 8,371,345 $12,067,685 $10,493,345 $384,000 1,067,000 734,000 383,000 2,568,000 9,499,685 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt $3,121,000 $,846,000 3,892,650 6,738,650 51,600 103,900 3,599,195 3,754,695 12,067,685 10,493,345 3,702,650 6,823,650 51,600 179,000 5,013,435 5,244,035 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity

Explanation / Answer

= (5,905,000/10,080,000) * 100

Gross Margin Percentage = 58.58%

Average Assets = (Opening Assets + Closing Assets) / 2

= ($10,493,345 + $12,067,685) / 2

Average Assets = $11,280,515

Return on Assets = $2,676,700 / $11,280,515

Return on Assets = 23.73%

Average common Stockholder’s Equity = (Opening common Stockholder’s Equity + Closing common Stockholder’s Equity) / 2

Shareholders Equity = Total Shareholders’ Equity – Preference Stock

Average Common Stockholders Equity = [(3,754,695-51,600) + (5,244,035-51,600)] / 2

Average Common Stockholders Equity =$4,447,765

Return on Common Stockholder’s Equity = ($1,873,690 - $29,450) / $4,447,765

Return on Common Stockholder’s Equity = 41.46%

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