The following amounts were taken from the financial statements of Vaughn Manufacturing:20172016Total assets$825000 $1019000Net sales740000655000Gross profit355000341000Net income101000132000Weighted average number9060087000ofcommon sharesoutstandingMarket price of common$42$36stock ofcommon sharesoutstandingMarket price of common$42$36stockThe return on assets for 2017 isO 10%.O 12%.O 5%.O 11%.

Return on Assets = Net Income / Average Total Assets Net Income 2017 = $101000 Average Total Assets 2017 = ($825000 + $1019000) / 2 = $922000 Return on Assets = $101000 / $922000 = 0.1095 or 10.95 or 11% (round off)Option d is correct i.e. Return on Assets = 11%

Answered: The return on assets for 2017 is O 10%.…

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Accounting

The return on assets for 2017 is O 10%. O 12%. O 5%. O 11%.

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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Question

The following amounts were taken from the financial statements of Vaughn Manufacturing:
2017
2016
Total assets
$825000 $1019000
Net sales
740000
655000
Gross profit
355000
341000
Net income
101000
132000
Weighted average number
90600
87000
of
common shares
outstanding
Market price of common
$42
$36
stock

of
common shares
outstanding
Market price of common
$42
$36
stock
The return on assets for 2017 is
O 10%.
O 12%.
O 5%.
O 11%.

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