Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $628,400 $579,000 Total investments 67,600 51,200 Total property, plant, and equipment 870,500 680,800 Total current liabilities 114,900 83,500 Total long-term liabilities 292,300 233,600 Preferred 9% stock, $100 par 82,700 82,700 Common stock, $10 par 513,600 513,600 Paid-in capital in excess of par—Common stock 63,700 63,700 Retained earnings 499,300 333,900 Using the balance sheets for Kellman Company, if net income is $110,100 and interest expense is $47,300 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?
Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $628,400 $579,000 Total investments 67,600 51,200 Total property, plant, and equipment 870,500 680,800 Total current liabilities 114,900 83,500 Total long-term liabilities 292,300 233,600 Preferred 9% stock, $100 par 82,700 82,700 Common stock, $10 par 513,600 513,600 Paid-in capital in excess of par—Common stock 63,700 63,700 Retained earnings 499,300 333,900 Using the balance sheets for Kellman Company, if net income is $110,100 and interest expense is $47,300 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use this information for Kellman Company to answer the question that follow.
The
| Kellman Company | ||
| Year 2 | Year 1 | |
| Total current assets | $628,400 | $579,000 |
| Total investments | 67,600 | 51,200 |
| Total property, plant, and equipment | 870,500 | 680,800 |
| Total current liabilities | 114,900 | 83,500 |
| Total long-term liabilities | 292,300 | 233,600 |
| 82,700 | 82,700 | |
| Common stock, $10 par | 513,600 | 513,600 |
| Paid-in capital in excess of par—Common stock | 63,700 | 63,700 |
| 499,300 | 333,900 |
Using the balance sheets for Kellman Company, if net income is $110,100 and interest expense is $47,300 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?
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