Equator Corporation has the following data available on December 31 for the year just ended:Average total assets for the year $ 800,000Total stockholders' equity at the beginning of the yearTotal stockholders' equity at the end of the year 600,000Net Income 250,000Interest expense 30,000Preferred dividends 50,000525,000The company’s return on assets for the year is closest toa. 21.25%.b. 25.00%.c. 31.25%.d. 44.44%.
Equator Corporation has the following data available on December 31 for the year just ended:Average total assets for the year $ 800,000Total stockholders' equity at the beginning of the yearTotal stockholders' equity at the end of the year 600,000Net Income 250,000Interest expense 30,000Preferred dividends 50,000525,000The company’s return on assets for the year is closest toa. 21.25%.b. 25.00%.c. 31.25%.d. 44.44%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Equator Corporation has the following data available on December 31 for the year just ended:
Average total assets for the year $ 800,000
Total
Total stockholders' equity at the end of the year 600,000
Net Income 250,000
Interest expense 30,000
Preferred dividends 50,000
525,000
The company’s return on assets for the year is closest to
a. 21.25%.
b. 25.00%.
c. 31.25%.
d. 44.44%.
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