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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%

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%

FINANCIAL ACCOUNTING
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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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%
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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