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.AssetsCash and short-term investments$41,385Accounts receivable (net)27,338Inventory36,309Property, plant, and equipment206,732Total assets$311,764 Liabilities and Stockholders' Equity Current liabilities$56,225 Long-term liabilities90,205 Stockholders' equity—Common165,334 Total liabilities and stockholders' equity$311,764 Income Statement Net Sales$82,724 Cost of goods sold(33,090) Gross margin49,634 Operating expenses(29,417) Interest expense (4,136) Net income$16,081 Number of shares of common stock outstanding6,061 Market price of common stock$25 Total dividends paid$9,700 Cash provided by operations$41,385Using the data provided for Diane Company, what is the return on total assets?

Name: The following information pertains to Diane Company. Assume that all b
Uploaded: 2022-11-23T13:49:46.000Z
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Description: 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.AssetsCash and

Operating income = Gross margin - Operating expenses = $49,634 - 29,417 = $20,217Return on total assets = Operating income / Average total assets = $20,217 / $311,764 = 6.48%

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 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	$41,385
Accounts receivable (net)	27,338
Inventory	36,309
Property, plant, and equipment	206,732
Total assets	$311,764


Liabilities and Stockholders' Equity
Current liabilities	$56,225
Long-term liabilities	90,205
Stockholders' equity—Common	165,334
Total liabilities and stockholders' equity	$311,764

Income Statement
Net Sales	$82,724
Cost of goods sold	(33,090)
Gross margin	49,634
Operating expenses	(29,417)
Interest expense	(4,136)
Net income	$16,081

Number of shares of common stock outstanding	6,061
Market price of common stock	$25
Total dividends paid	$9,700
Cash provided by operations	$41,385

Using the data provided for Diane Company, what is the return on total assets?

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