The following information pertains to Diana Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Line Item Description Amount Cash and short-term investments $36,084 Accounts receivable (net) 26,488 Inventory 39,031 Property, plant, and equipment 284,840 Total Assets $386,443 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $64,429 Long-term liabilities 91,237 Common stock 175,317 Retained earnings 55,460 Total liabilities and stockholders' equity $386,443 Income Statement Line Item Description Amount Sales $88,296 Cost of goods sold 35,318 Gross margin $52,978 Operating expenses (20,439) Interest expense (4,415) Net income $28,124 Line Item Description Amount Number of shares of common stock outstanding 5,546 Market price of common stock $29 Total dividends paid $9,000 Cash provided by operations $30,000 What is the return on total assets for Diana Company?
The following information pertains to Diana Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Line Item Description Amount Cash and short-term investments $36,084 Accounts receivable (net) 26,488 Inventory 39,031 Property, plant, and equipment 284,840 Total Assets $386,443 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $64,429 Long-term liabilities 91,237 Common stock 175,317 Retained earnings 55,460 Total liabilities and stockholders' equity $386,443 Income Statement Line Item Description Amount Sales $88,296 Cost of goods sold 35,318 Gross margin $52,978 Operating expenses (20,439) Interest expense (4,415) Net income $28,124 Line Item Description Amount Number of shares of common stock outstanding 5,546 Market price of common stock $29 Total dividends paid $9,000 Cash provided by operations $30,000 What is the return on total assets for Diana Company?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information pertains to Diana Company. Assume that all
Assets
| Line Item Description | Amount |
|---|---|
| Cash and short-term investments | $36,084 |
| 26,488 | |
| Inventory | 39,031 |
| Property, plant, and equipment | 284,840 |
| Total Assets | $386,443 |
Liabilities and
| Line Item Description | Amount |
|---|---|
| Current liabilities | $64,429 |
| Long-term liabilities | 91,237 |
| Common stock | 175,317 |
| 55,460 | |
| Total liabilities and stockholders' equity | $386,443 |
Income Statement
| Line Item Description | Amount |
|---|---|
| Sales | $88,296 |
| Cost of goods sold | 35,318 |
| Gross margin | $52,978 |
| Operating expenses | (20,439) |
| Interest expense | (4,415) |
| Net income | $28,124 |
| Line Item Description | Amount |
|---|---|
| Number of shares of common stock outstanding | 5,546 |
| Market price of common stock | $29 |
| Total dividends paid | $9,000 |
| Cash provided by operations | $30,000 |
What is the return on total assets for Diana Company?
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