FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Total current assets
Total investments
Total property, plant, and equipment
Total current liabilities
Total long-term liabilities
Preferred 9% stock, $100 par
Common stock, $10 par
Paid-in capital in excess of par-Common stock
Retained earnings
a. 9.01%
b. 11.22%
Year 2
c. 4.85%
d. 7.26%
$600,100
63,200
887,300
111,400
311,700
83,200
565,300
62,900
416,100
Year 1
Using the balance sheets for Kellman Company, if net income is $112,500 and interest expense is
$44,600 for Year 2, what is the return on total assets for the year (rounded to two decimal
places)?
$583,900
46,500
618,800
87,000
234,900
83,200
565,300
62,900
215,900
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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 Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-Common stock Retained earnings a. 9.01% b. 11.22% Year 2 c. 4.85% d. 7.26% $600,100 63,200 887,300 111,400 311,700 83,200 565,300 62,900 416,100 Year 1 Using the balance sheets for Kellman Company, if net income is $112,500 and interest expense is $44,600 for Year 2, what is the return on total assets for the year (rounded to two decimal places)? $583,900 46,500 618,800 87,000 234,900 83,200 565,300 62,900 215,900
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