The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $41,706 Accounts receivable (net) 32,359 Inventory 33,536 Property, plant, and equipment 244,092 Total Assets $351,693 Liabilities and Stockholders' Equity Current liabilities $67,811 Long-term liabilities 92,969 Common stock, $20 par 125,380 Retained earnings 65,533 Total Liabilities and stockholders' equity $351,693 Income Statement Sales $85,174 Cost of goods sold 38,328 Gross margin $46,846 Operating expenses 28,378 Net income $18,468 Number of shares of common stock 6,269 Market price of common stock $20 Dividends per share $1.00 Cash provided by operations $40,000 What is the return on stockholders' equity? a.28.2% b.1.1% c.6.9% d.2.9%
The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $41,706 Accounts receivable (net) 32,359 Inventory 33,536 Property, plant, and equipment 244,092 Total Assets $351,693 Liabilities and Stockholders' Equity Current liabilities $67,811 Long-term liabilities 92,969 Common stock, $20 par 125,380 Retained earnings 65,533 Total Liabilities and stockholders' equity $351,693 Income Statement Sales $85,174 Cost of goods sold 38,328 Gross margin $46,846 Operating expenses 28,378 Net income $18,468 Number of shares of common stock 6,269 Market price of common stock $20 Dividends per share $1.00 Cash provided by operations $40,000 What is the return on stockholders' equity? a.28.2% b.1.1% c.6.9% d.2.9%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information pertains to Dallas Company. Assume that all
| Assets | |
| Cash and short-term investments | $41,706 |
| 32,359 | |
| Inventory | 33,536 |
| Property, plant, and equipment | 244,092 |
| Total Assets | $351,693 |
| Liabilities and |
|
| Current liabilities | $67,811 |
| Long-term liabilities | 92,969 |
| Common stock, $20 par | 125,380 |
| 65,533 | |
| Total Liabilities and stockholders' equity | $351,693 |
| Income Statement | |
| Sales | $85,174 |
| Cost of goods sold | 38,328 |
| Gross margin | $46,846 |
| Operating expenses | 28,378 |
| Net income | $18,468 |
| Number of shares of common stock | 6,269 |
| Market price of common stock | $20 |
| Dividends per share | $1.00 |
| Cash provided by operations | $40,000 |
What is the return on stockholders' equity?
a.28.2%
b.1.1%
c.6.9%
d.2.9%
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