The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $607,488 $558,507 Total investments 60,906 46,462 Total property, plant, and equipment 941,840 669,510 Total current liabilities 100,866 85,664 Total long-term liabilities 292,628 231,155 Preferred 9% stock, $100 par 90,744 90,744 Common stock, $10 par 568,743 568,743 Paid-in capital in excess of par-common stock 67,886 67,886 Retained earnings 489,367 230,287 Using the balance sheets for Kellman Company, if net income is $112,113 and interest expense is $33,379 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Ca. 10.31% b. 8.80% c. 10.09% d. 6.96%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The balance sheets at the end of each of the first two years of operations indicate the following:
Kellman Company
Year 2 Year 1
Total current assets
$607,488 $558,507
Total investments
60,906 46,462
Total property, plant, and equipment
941,840
669,510
Total current liabilities
100,866 85,664
Total long-term liabilities
292,628 231,155
Preferred 9% stock, $100 par
90,744 90,744
Common stock, $10 par
568,743
568,743
Paid-in capital in excess of par-common stock
67,886
67,886
Retained earnings
489,367
230,287
Using the balance sheets for Kellman Company, if net income is $112,113 and interest expense is $33,379 for Year 2, what is the return on total assets for the year
(round percent to two decimal points)?
a. 10.31%
b. 8.80%
Oc. 10.09%
Od. 6.96%
Transcribed Image Text:The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $607,488 $558,507 Total investments 60,906 46,462 Total property, plant, and equipment 941,840 669,510 Total current liabilities 100,866 85,664 Total long-term liabilities 292,628 231,155 Preferred 9% stock, $100 par 90,744 90,744 Common stock, $10 par 568,743 568,743 Paid-in capital in excess of par-common stock 67,886 67,886 Retained earnings 489,367 230,287 Using the balance sheets for Kellman Company, if net income is $112,113 and interest expense is $33,379 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? a. 10.31% b. 8.80% Oc. 10.09% Od. 6.96%
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