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.AssetsCash and short-term investments$39,930Accounts receivable (net)26,035Inventory25,780Property, plant, and equipment296,952Total Assets$388,697 Liabilities and Stockholders' EquityCurrent liabilities$60,554Long-term liabilities98,485Common stock162,488Retained earnings67,170Total liabilities and stockholders' equity$388,697 Income StatementSales$89,668 Cost of goods sold35,867 Gross margin$53,801 Operating expenses(29,364)Interest expense(4,483)Net income$19,954 Number of shares of common stock outstanding6,717Market price of common stock$29Total dividends paid$9,000Cash provided by operations$30,000What is the return on total assets for Diane Company?a.6.3%b.1.4%c.3.4%d.9.8%

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 and that all sales were on credit.AssetsCash and short-term investments$39,930Accounts receivable (net)26,035

Return on total assets is the ratio that measures company's EBIT relative to its total assets

Answered: What is the return on total assets for…

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 and that all sales were on credit.

Assets
Cash and short-term investments	$39,930
Accounts receivable (net)	26,035
Inventory	25,780
Property, plant, and equipment	296,952
Total Assets	$388,697

Liabilities and Stockholders' Equity
Current liabilities	$60,554
Long-term liabilities	98,485
Common stock	162,488
Retained earnings	67,170
Total liabilities and stockholders' equity	$388,697

Income Statement
Sales	$89,668
Cost of goods sold	35,867
Gross margin	$53,801
Operating expenses	(29,364)
Interest expense	(4,483)
Net income	$19,954

Number of shares of common stock outstanding	6,717
Market price of common stock	$29
Total dividends paid	$9,000
Cash provided by operations	$30,000

What is the return on total assets for Diane Company?

a.6.3%

b.1.4%

c.3.4%

d.9.8%

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