Cecilia Company reported net income of $1,850,000. The average total liabilities were $7,302,500 and average total stockholders' equity was $6,205,000. Interest expense was $200,500 and the tax rate was 35%. What is the return on assets ratio?

Cecilia Company reported net income of $1,850,000. The average total liabilities were $7,302,500 and average total stockholders' equity was $6,205,000. Interest expense was $200,500 and the tax rate was 35%. What is the return on assets ratio?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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Question

Provide answer

Cecilia Company reported net income of
$1,850,000. The average total liabilities
were $7,302,500 and average total
stockholders' equity was $6,205,000.
Interest expense was $200,500 and the tax
rate was 35%. What is the return on assets
ratio?

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