The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings Year 2 Year 1 $629,337 $589,332 60,228 40,363 861,159 681,074 102,094 83,445 323,402 228,617 95,941 95,941 559,966 559,966 66,297 66,297 403,024 276,503 Using the balance sheets for Kellman Company, if net income is $119,929 and interest expense is $36,940 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Oa. 10.96% Ob. 7.73% Oc. 9.15% Od. 11.29%
The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings Year 2 Year 1 $629,337 $589,332 60,228 40,363 861,159 681,074 102,094 83,445 323,402 228,617 95,941 95,941 559,966 559,966 66,297 66,297 403,024 276,503 Using the balance sheets for Kellman Company, if net income is $119,929 and interest expense is $36,940 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Oa. 10.96% Ob. 7.73% Oc. 9.15% Od. 11.29%
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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