Cecilia Company reported net income of $1,250,000. The average total liabilities were $4,302,500 and average total stockholders' equity was $5,205,000. Interest expense was $100,500 and the tax rate was 40%. Cecilia's return on assets ratio is closest to: 13.8% 13.1% 12.1% 14.2%

Cecilia Company reported net income of $1,250,000. The average total liabilities were $4,302,500 and average total stockholders' equity was $5,205,000. Interest expense was $100,500 and the tax rate was 40%. Cecilia's return on assets ratio is closest to: 13.8% 13.1% 12.1% 14.2%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cecilia Company reported net income of $1,250,000. The average total liabilities
were $4,302,500 and average total stockholders' equity was $5,205,000. Interest
expense was $100,500 and the tax rate was 40%. Cecilia's return on assets ratio is
closest to:
13.8%
13.1%
12.1%
14.2%

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