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 Year 2 $606,800 67,300 866,400 112,900 294,300 87,700 590,000 67,400 388,200 Year 1 $570,000 51,500 630,600 85,700 225,600 87,700 590,000 67,400 195,700 Paid-in capital in excess of par-Common stock Retained earnings Using the balance sheets for Kellman Company, if net income is $101,200 and interest expense is $47,000 for Year 2, what is the return on total assets for the year (rounded to two decimal places)? O x 6.57% On 1061% 0 € 3.08% O & KON%

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Year 2
$606,800
67,300
866,400
112,900
294,300
87,700
O. 6.57%
On 1061%
O € 3.08%
O & KON%
Year 1
$570,000
51,500
Preferred 9% stock, $100 par
Common stock, $10 par
Paid-in capital in excess of par-Common stock
Retained earnings
Using the balance sheets for Kellman Company, if net income is $101,200 and interest expense is $47,000 for Year 2, what is the return on total assets for the year
(rounded to two decimal places)?
590,000
67,400
388,200
630,600
85,700
225,600
87,700
590,000
67,400
195,700
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 Year 2 $606,800 67,300 866,400 112,900 294,300 87,700 O. 6.57% On 1061% O € 3.08% O & KON% Year 1 $570,000 51,500 Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-Common stock Retained earnings Using the balance sheets for Kellman Company, if net income is $101,200 and interest expense is $47,000 for Year 2, what is the return on total assets for the year (rounded to two decimal places)? 590,000 67,400 388,200 630,600 85,700 225,600 87,700 590,000 67,400 195,700
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