2014 2013

(i) Return on assets 15.4 % 14.8 %

(ii) Return on common stockholders equity 24.1 % 18.0 %

(iii) Payout ratio 39.2 % 40.5 %

(iv) Debt to assets ratio 38.2 % 16.9 %

(v) Times interest earned 6.9 times 24.5 times

Journalize the transactions. (Record entries in the order displayed in the problem
statement. Credit account titles are automatically indented when amount is
entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit

Feb. 1 Cash 32200

Common Stock 18400

Additional Paid 13800

Mar. 20 Treasury Stoc 12240

Cash 12240

Oct. 1 Cash dividend 24480

Dividends pay 24480

Nov. 1 Dividends pay 24480

Cash 24480

Dec. 1 Cash dividend 210976

Dividends pay 210976

Dec. 31 Income Summa 281600

Retained earn 281600

(To record net income)

Dec. 31 Retained earn 235456

Cash dividend 235456

(To close cash dividends)

Dec. 31 Dividends pay 210976

Cash 210976

(To record payment of cash dividends payable)

Enter the beginning balances in the accounts and post the journal entries to the
stockholders equity accounts. (Post entries in the order of journal entries posted in
the previous part.)

Preferred Stock

1/1 Bal. 306000

12/31 Bal. 306000

Common Stock

1/1 Bal. 1041920

2/1 18400

12/31 Bal. 1060320

Paid-in Capital in Excess of Par ValuePreferred Stock

1/1 Bal. 12240

12/31 Bal. 12240

Paid-in Capital in Excess of Stated ValueCommon Stock

1/1 Bal. 260480

2/1 13800

12/31 Bal. 274280

Retained Earnings

12/31 235456 1/1 Bal. 704300

12/31 281600

12/31 Bal. 750444

Cash Dividends

10/1 24480 12/31 235456

12/1 210976

12/31 Bal. NIL

Treasury Stock

1/1 Bal. 40800

3/20 12240

12/31 Bal. 53040

Prepare the stockholders equity section of the balance sheet at December 31, 2014.

MILEY CORPORATION

Partial Balance Sheet

December 31, 2014

Stockholders' Equity

Paid-in Capital

Capital Stock

$
Preferred Stoc
306000

Common Stock 1060320

Total Capital Stock 1366320

Additional Paid-in Capital

Preferred Stoc 12240

Common Stock 274280

286520
Total Additional Paid-in Capital

1652840
Total Paid-in Capital

Retained earn 750444

2403284
Total Paid-in Capital and Retained Earnings

Less

: 53040
Treasury Stoc

Total Stockholders Equity 2350244

Calculate the payout ratio, earnings per share, and return on common stockholders
equity. (Round earning per share to 2 decimal places, e.g. $2.65 and all other
answers to 1 decimal place. 17.5%.)

Payout ratio 74.9 %

$
Earnings per share 1.07

Return on common stockholders equity 12.0 %