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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. Use this information to answer the question that follow. Assets Cash and short-term investments $39,569 Accounts receivable (net) 29,417 Merchandise inventory 30,907 Property, plant, and equipment 219,211 Total assets $319,104     Liabilities and Stockholders' Equity   Current liabilities $66,051   Long-term liabilities 93,607   Stockholders' equity—common 159,446   Total liabilities and stockholders' equity $319,104   Income Statement   Sales $93,952    Cost of merchandise sold (37,581)   Gross profit $56,371    Operating expenses (26,268)   Interest expense  (4,698)   Net income $25,405      Number of shares of common stock outstanding 6,014   Market price per share of common stock $31   Total dividends paid $8,800   Net cash flows from operating activities $39,569 Using the data provided for Diane Company, what is the return on total assets (round your answer to one decimal place) ? a.9.4% b.11.8% c.10.6% d.9.1%

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. Use this information to answer the question that follow. Assets Cash and short-term investments $39,569 Accounts receivable (net) 29,417 Merchandise inventory 30,907 Property, plant, and equipment 219,211 Total assets $319,104     Liabilities and Stockholders' Equity   Current liabilities $66,051   Long-term liabilities 93,607   Stockholders' equity—common 159,446   Total liabilities and stockholders' equity $319,104   Income Statement   Sales $93,952    Cost of merchandise sold (37,581)   Gross profit $56,371    Operating expenses (26,268)   Interest expense  (4,698)   Net income $25,405      Number of shares of common stock outstanding 6,014   Market price per share of common stock $31   Total dividends paid $8,800   Net cash flows from operating activities $39,569 Using the data provided for Diane Company, what is the return on total assets (round your answer to one decimal place) ? a.9.4% b.11.8% c.10.6% d.9.1%

FINANCIAL ACCOUNTING
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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  1. 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. Use this information to answer the question that follow.

    Assets
    Cash and short-term investments $39,569
    Accounts receivable (net) 29,417
    Merchandise inventory 30,907
    Property, plant, and equipment 219,211
    Total assets $319,104
     
     
    Liabilities and Stockholders' Equity
      Current liabilities $66,051
      Long-term liabilities 93,607
      Stockholders' equity—common 159,446
      Total liabilities and stockholders' equity $319,104
     
    Income Statement
      Sales $93,952 
      Cost of merchandise sold (37,581)
      Gross profit $56,371 
      Operating expenses (26,268)
      Interest expense  (4,698)
      Net income $25,405 
     
      Number of shares of common stock outstanding 6,014
      Market price per share of common stock $31
      Total dividends paid $8,800
      Net cash flows from operating activities $39,569

    Using the data provided for Diane Company, what is the return on total assets (round your answer to one decimal place) ?

    a.9.4%
    b.11.8%
    c.10.6%
    d.9.1%
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