Question: Consider the following facts for Company A: Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 45,000 Inventory Accounts receivable (net) Property, plant, and equipment Total assets Liabilities and Stockholders' Equity 25,000 20,000 210,000 $ 300,000 Current liabilities Long-term liabilities $ 50,000 90,000 Stockholders' equity- common Total liabilities and stockholders' equity $300,000 160,000 Income Statement Sales Cost of goods sold Gross profit Operating expenses $ 120,000 66,000 54,000 30,000 $ 24,000 6,000 $20 .50 Net income Number of shares of common stock Market price of common stock Dividends per share What is the return on assets for Company A?
Question: Consider the following facts for Company A: Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 45,000 Inventory Accounts receivable (net) Property, plant, and equipment Total assets Liabilities and Stockholders' Equity 25,000 20,000 210,000 $ 300,000 Current liabilities Long-term liabilities $ 50,000 90,000 Stockholders' equity- common Total liabilities and stockholders' equity $300,000 160,000 Income Statement Sales Cost of goods sold Gross profit Operating expenses $ 120,000 66,000 54,000 30,000 $ 24,000 6,000 $20 .50 Net income Number of shares of common stock Market price of common stock Dividends per share What is the return on assets for Company A?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2SEA
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