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 $607,488 $558,507 Total investments 60,906 46,462 Total property, plant, and equipment 941,840 669,510 Total current liabilities 100,866 85,664 Total long-term liabilities 292,628 231,155 Preferred 9% stock, $100 par 90,744 90,744 Common stock, $10 par 568,743 568,743 Paid-in capital in excess of par-common stock 67,886 67,886 Retained earnings 489,367 230,287 Using the balance sheets for Kellman Company, if net income is $112,113 and interest expense is $33,379 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Ca. 10.31% b. 8.80% c. 10.09% d. 6.96%

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 $607,488 $558,507 Total investments 60,906 46,462 Total property, plant, and equipment 941,840 669,510 Total current liabilities 100,866 85,664 Total long-term liabilities 292,628 231,155 Preferred 9% stock, $100 par 90,744 90,744 Common stock, $10 par 568,743 568,743 Paid-in capital in excess of par-common stock 67,886 67,886 Retained earnings 489,367 230,287 Using the balance sheets for Kellman Company, if net income is $112,113 and interest expense is $33,379 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Ca. 10.31% b. 8.80% c. 10.09% d. 6.96%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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