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Business
Accounting
Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $750,000 $440,000 $310,000 $162,000 Return on total assets $ 9,000 $ 101,000 Required: What is the return on total assets (assuming a 30% tax rate) ? (Round your answer to 1 decimal place.) 55.0 %

Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $750,000 $440,000 $310,000 $162,000 Return on total assets $ 9,000 $ 101,000 Required: What is the return on total assets (assuming a 30% tax rate) ? (Round your answer to 1 decimal place.) 55.0 %

FINANCIAL ACCOUNTING
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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C.19.

 

Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $750,000 $440,000 $ 310,000 $ 162,000 $ 9,000 $ 101,000 Required: What is the return on total assets (assuming a 30% tax rate) ? (Round your answer to 1 decimal place.) Return on total assets 55.0 %
Transcribed Image Text:Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $750,000 $440,000 $ 310,000 $ 162,000 $ 9,000 $ 101,000 Required: What is the return on total assets (assuming a 30% tax rate) ? (Round your answer to 1 decimal place.) Return on total assets 55.0 %
Markus Company's common stock sold for $3.00 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Ending Balance $ 31,000 $ 64,000 $59,200 $154,200 $149,900 Beginning Balance $32,200 Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity $490,000 $42.000 $ 84,000 $350,000 $490,000 $ $ 63,000 $ 140,000 $53,700 $ 64,000 506,000 $ 49,500 126,000 $ 42,000 $ 84,000 $ 380,000 Saved 506,000
Transcribed Image Text:Markus Company's common stock sold for $3.00 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Ending Balance $ 31,000 $ 64,000 $59,200 $154,200 $149,900 Beginning Balance $32,200 Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity $490,000 $42.000 $ 84,000 $350,000 $490,000 $ $ 63,000 $ 140,000 $53,700 $ 64,000 506,000 $ 49,500 126,000 $ 42,000 $ 84,000 $ 380,000 Saved 506,000
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