hancial Statement Analysis 65. The following information pertains to Auburn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. 931 Cash and short-term investments Accounts receivable (net) Assets Inventory Property, plant and equipment Total Assets S 40,000 30,000 25,000 280,000 $375,000 Current liabilities Liabilities and Stockholders Equity Long-term liabilities Stockholders' equity-common Total Liabilities and stockholders' equity 60,000 95,000 220,000 $375,000 Sales Cost of goods sold Gross margin Operating expenses Net income Income Statement $ 90.000 45,000 45,000 10,000 $ 35,000 Number of shares of common stock Market price of common stock Dividends per share Cash provided by operations 6,000 20 1.00 $ 40,000 What is the rate earned on stockholders' equity? Round answer to a single decimal point. a. 9.3% 15.9% b. 24.0% C. LO: 17-03 OBJ: d. 40.9% DIF: KEY: Bloom's: Knowledge Moderate PTS: 1 ANS: B NAT: BUSPROG: Analytic
hancial Statement Analysis 65. The following information pertains to Auburn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. 931 Cash and short-term investments Accounts receivable (net) Assets Inventory Property, plant and equipment Total Assets S 40,000 30,000 25,000 280,000 $375,000 Current liabilities Liabilities and Stockholders Equity Long-term liabilities Stockholders' equity-common Total Liabilities and stockholders' equity 60,000 95,000 220,000 $375,000 Sales Cost of goods sold Gross margin Operating expenses Net income Income Statement $ 90.000 45,000 45,000 10,000 $ 35,000 Number of shares of common stock Market price of common stock Dividends per share Cash provided by operations 6,000 20 1.00 $ 40,000 What is the rate earned on stockholders' equity? Round answer to a single decimal point. a. 9.3% 15.9% b. 24.0% C. LO: 17-03 OBJ: d. 40.9% DIF: KEY: Bloom's: Knowledge Moderate PTS: 1 ANS: B NAT: BUSPROG: Analytic
Chapter1: Financial Statements And Business Decisions
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