Question: Calculate return on assets. Question options: 1) 3.32% 2) 11.07% 3) 2.39% 4) None of the above ssets Cash and securities 1,554.00 Accounts receivable 9,660.00
Calculate return on assets.
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| Cash and securities |
| 1,554.00 |
| Accounts receivable |
| 9,660.00 |
| Inventories |
| 13,440.00 |
| Total current assets |
| 24,654.00 |
| Net plant and equipment |
| 17,346.00 |
| Total assets |
| 42,000.00 |
| Liabilities and Equity |
| Accounts payable |
| 7,980.00 |
| Notes payable |
| 5,880.00 |
| Accruals |
| 4,620.00 |
| Total current liabilities |
| 18,480.00 |
| Long-term bonds |
| 10,920.00 |
| Total debt |
| 29,400.00 |
| Common stock |
| 3,360.00 |
| Retained earnings |
| 9,240.00 |
| Total common equity |
| 12,600.00 |
| Total liabilities and equity |
| 42,000.00 |
| Income Statement |
| Sales |
| 58,800.00 |
| Operating costs except depreciation |
| 54,978.00 |
| Depreciation |
| 1,029.00 |
| Earnings before interest and taxes (EBIT) |
| 2,793.00 |
| Less interest charges |
| 1,050.00 |
| Earnings before taxes (EBT) |
| 1,743.00 |
| Taxes (20%) |
| 348.6 |
| Net income |
| 1,394.40 |
| Shares outstanding |
| 175 |
| Common dividends |
| $418.32 |
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