Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $611,000 $591,100 Total investments 65,200 40,600 Total property, plant, and equipment 859,600 736,400 Total current liabilities 110,900 86,400 Total long-term liabilities 298,200 240,700 Preferred 9% stock, $100 par 82,400 82,400 Common stock, $10 par 541,100 541,100 Paid-in capital in excess of par-Common stock 66,400 66,400 Retained earnings 436,800 351,100 Using the balance sheets for Kellman Company, if net income is $110,100 and interest expense is $40,000 for Year 2, and the market price of common shares is $33, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.) Оа. 1.90 Оb. 10.16 Ос. 10.34 Od. 17.37

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Use this information for Kellman Company to answer the question that follow.
The balance sheets at the end of each of the first 2 years of operations indicate the following:
Kellman Company
Year 2
Year 1
Total current assets
$611,000
$591,100
Total investments
65,200
40,600
Total property, plant, and equipment
859,600
736,400
Total current liabilities
110,900
86,400
Total long-term liabilities
298,200
240,700
Preferred 9% stock, $100 par
82,400
82,400
Common stock, $10 par
541,100
541,100
Paid-in capital in excess of par-Common stock
66,400
66,400
Retained earnings
436,800
351,100
Using the balance sheets for Kellman Company, if net income is $110,100 and interest expense is $40,000 for Year 2, and the market price of
common shares is $33, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to
two decimal places.)
Oa. 1.90
Оb. 10.16
Ос. 10.34
Od. 17.37
Transcribed Image Text:Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $611,000 $591,100 Total investments 65,200 40,600 Total property, plant, and equipment 859,600 736,400 Total current liabilities 110,900 86,400 Total long-term liabilities 298,200 240,700 Preferred 9% stock, $100 par 82,400 82,400 Common stock, $10 par 541,100 541,100 Paid-in capital in excess of par-Common stock 66,400 66,400 Retained earnings 436,800 351,100 Using the balance sheets for Kellman Company, if net income is $110,100 and interest expense is $40,000 for Year 2, and the market price of common shares is $33, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.) Oa. 1.90 Оb. 10.16 Ос. 10.34 Od. 17.37
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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 $624,712 $551,139
Total investments 69,973 46,077
Total property, plant, and equipment 893,649 725,691
Total current liabilities 110,178 81,814
Total long-term liabilities 316,843 246,928
Preferred 9% stock, $100 par 85,948 85,948
Common stock, $10 par 586,945 586,945
Paid-in capital in excess of par-common stock 67,781 67,781
Retained earnings 420,639 253,491

Using the balance sheets for Kellman Company, if net income is $112,376 and interest expense is $42,384 for Year 2, what is the return on total assets for the year (round percent to two decimal points)?

a.10.63%
b.7.08%
c.8.49%
d.10.43%
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