The following information pertains to Diane 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 $39,106 Accounts receivable (net) 30,483 Inventory 36,576 Property, plant, and equipment 260,287 Total Assets $366,452 Liabilities and Stockholders' Equity Current liabilities $59,300 Long-term liabilities 94,785 Common stock 146,337 Retained earnings 66,030 Total liabilities and stockholders' equity $366,452 Income Statement Sales $89,476 Cost of goods sold 35,790 Gross margin $53,686 Operating expenses (23,597) Interest expense (4,474) Net income $25,615 Number of shares of common stock outstanding 6,603 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 Diane Company?
The following information pertains to Diane 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 $39,106 Accounts receivable (net) 30,483 Inventory 36,576 Property, plant, and equipment 260,287 Total Assets $366,452 Liabilities and Stockholders' Equity Current liabilities $59,300 Long-term liabilities 94,785 Common stock 146,337 Retained earnings 66,030 Total liabilities and stockholders' equity $366,452 Income Statement Sales $89,476 Cost of goods sold 35,790 Gross margin $53,686 Operating expenses (23,597) Interest expense (4,474) Net income $25,615 Number of shares of common stock outstanding 6,603 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 Diane Company?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information pertains to Diane Company. Assume that all
| Assets | |
| Cash and short-term investments | $39,106 |
| 30,483 | |
| Inventory | 36,576 |
| Property, plant, and equipment | 260,287 |
| Total Assets | $366,452 |
| Liabilities and |
|
| Current liabilities | $59,300 |
| Long-term liabilities | 94,785 |
| Common stock | 146,337 |
| 66,030 | |
| Total liabilities and stockholders' equity | $366,452 |
| Income Statement | |
| Sales | $89,476 |
| Cost of goods sold | 35,790 |
| Gross margin | $53,686 |
| Operating expenses | (23,597) |
| Interest expense | (4,474) |
| Net income | $25,615 |
| Number of shares of common stock outstanding | 6,603 |
| 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 Diane Company?
Transcribed Image Text:What is the return on total assets for Diane Company?
Oa. 2.9%
Ob. 7.5%
Oc. 8.2%
Od. 1.0%
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