Question Content Area The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Line Item Description Year 2 Year 1 Total current assets $619,600 $594,600 Total investments 65,200 52,800 Total property, plant, and equipment 902,200 756,500 Total current liabilities 100,500 89,200 Total long-term liabilities 309,500 241,700 Preferred 9% stock, $100 par 86,300 86,300 Common stock, $10 par 554,200 554,200 Paid-in capital in excess of par-common stock 61,200 61,200 Retained earnings 475,300 371,300 Using the balance sheets for Kellman Company, if net income is $118,900 and interest expense is $33,500 for Year 2, what is the return on stockholders' equity for Year 2 (round percent to two decimal points)? a.12.98% b.10.90% c.11.45% d.12.05%
Question Content Area The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Line Item Description Year 2 Year 1 Total current assets $619,600 $594,600 Total investments 65,200 52,800 Total property, plant, and equipment 902,200 756,500 Total current liabilities 100,500 89,200 Total long-term liabilities 309,500 241,700 Preferred 9% stock, $100 par 86,300 86,300 Common stock, $10 par 554,200 554,200 Paid-in capital in excess of par-common stock 61,200 61,200 Retained earnings 475,300 371,300 Using the balance sheets for Kellman Company, if net income is $118,900 and interest expense is $33,500 for Year 2, what is the return on stockholders' equity for Year 2 (round percent to two decimal points)? a.12.98% b.10.90% c.11.45% d.12.05%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The balance sheets at the end of each of the first two years of operations indicate the following:
Kellman Company
Line Item Description Year 2 Year 1
Total current assets $619,600 $594,600
Total investments 65,200 52,800
Total property, plant, and equipment 902,200 756,500
Total current liabilities 100,500 89,200
Total long-term liabilities 309,500 241,700
Preferred 9% stock , $100 par 86,300 86,300
Common stock, $10 par 554,200 554,200
Paid-in capital in excess of par-common stock 61,200 61,200
Retained earnings 475,300 371,300
Using the balance sheets for Kellman Company, if net income is $118,900 and interest expense is $33,500 for Year 2, what is the return on stockholders' equity for Year 2 (round percent to two decimal points)?
a.12.98%
b.10.90%
c.11.45%
d.12.05%
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