Jester Corporation's most recent income statement appears below: Sales (all on account) $610000 Cost of goods sold 340000 Gross margin 270000 Selling and administrative expense 160000 Net operating income 110000 Interest expense 20000 Net income before taxes 90000 Income taxes (30%) 27000 Net income $63000 The beginning balance of total assets was $360,000 and the ending balance was $320,000. What percentage is the return on total assets closest to? A. 22.6% B. 26.5% C. 32.4% D. 18.5%
Jester Corporation's most recent income statement appears below: Sales (all on account) $610000 Cost of goods sold 340000 Gross margin 270000 Selling and administrative expense 160000 Net operating income 110000 Interest expense 20000 Net income before taxes 90000 Income taxes (30%) 27000 Net income $63000 The beginning balance of total assets was $360,000 and the ending balance was $320,000. What percentage is the return on total assets closest to? A. 22.6% B. 26.5% C. 32.4% D. 18.5%
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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![Jester Corporation's most recent income statement appears below:
Sales (all on account) $610000
Cost of goods sold 340000
Gross margin 270000
Selling and administrative expense 160000
Net operating income 110000
Interest expense 20000
Net income before taxes 90000
Income taxes (30%) 27000
Net income $63000
The beginning balance of total assets was $360,000 and the ending
balance was $320,000. What percentage is the return on total assets
closest to?
A. 22.6%
B. 26.5%
C. 32.4%
D. 18.5%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2b2b2a3-dbcf-4106-9363-d6b86594c07a%2F325749ca-21e9-499b-a520-722cb1548a60%2F89tpr5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jester Corporation's most recent income statement appears below:
Sales (all on account) $610000
Cost of goods sold 340000
Gross margin 270000
Selling and administrative expense 160000
Net operating income 110000
Interest expense 20000
Net income before taxes 90000
Income taxes (30%) 27000
Net income $63000
The beginning balance of total assets was $360,000 and the ending
balance was $320,000. What percentage is the return on total assets
closest to?
A. 22.6%
B. 26.5%
C. 32.4%
D. 18.5%
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