The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $40,936 Accounts receivable (net) 32,902 Inventory 36,625 Property, plant, and equipment 280,196 Total assets $390,659 Liabilities and Stockholders' Equity Current liabilities $69,773 Long-term liabilities 90,745 Stockholders' equity—Common 230,141 Total liabilities and stockholders' equity $390,659 Income Statement Net Sales $98,683 Cost of goods sold (39,473) Gross margin 59,210 Operating expenses (29,056) Interest expense (4,934) Net income $25,220 Number of shares of common stock outstanding 5,105 Market price of common stock $32 Total dividends paid $9,000 Cash provided by operations $40,936 Using the data provided for Diane Company, what is the return on total assets?
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $40,936 Accounts receivable (net) 32,902 Inventory 36,625 Property, plant, and equipment 280,196 Total assets $390,659 Liabilities and Stockholders' Equity Current liabilities $69,773 Long-term liabilities 90,745 Stockholders' equity—Common 230,141 Total liabilities and stockholders' equity $390,659 Income Statement Net Sales $98,683 Cost of goods sold (39,473) Gross margin 59,210 Operating expenses (29,056) Interest expense (4,934) Net income $25,220 Number of shares of common stock outstanding 5,105 Market price of common stock $32 Total dividends paid $9,000 Cash provided by operations $40,936 Using the data provided for Diane Company, what is the return on total assets?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice Pack
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow.
| Assets | |
| Cash and short-term investments | $40,936 |
| Accounts receivable (net) | 32,902 |
| Inventory | 36,625 |
| Property, plant, and equipment | 280,196 |
| Total assets | $390,659 |
| Liabilities and |
|
| Current liabilities | $69,773 |
| Long-term liabilities | 90,745 |
| Stockholders' equity—Common | 230,141 |
| Total liabilities and stockholders' equity | $390,659 |
| Income Statement | |
| Net Sales | $98,683 |
| Cost of goods sold | (39,473) |
| Gross margin | 59,210 |
| Operating expenses | (29,056) |
| Interest expense | (4,934) |
| Net income | $25,220 |
| Number of shares of common stock outstanding | 5,105 |
| Market price of common stock | $32 |
| Total dividends paid | $9,000 |
| Cash provided by operations | $40,936 |
Using the data provided for Diane Company, what is the return on total assets?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Includes step-by-step video
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education