Question
27. The 2019 and 2020 partial balance sheets for Fox Industries are shown below: 2019 2020 Current Assets Cash and cash equivalents $ 16,000 $
| 2019 | 2020 |
Current Assets |
|
|
Cash and cash equivalents | $ 16,000 | $ 14,000 |
Accounts Receivable, net | 20,000 | 24,000 |
Inventory | 25,000 | 23,000 |
Marketable equity securities | 5,000 | 5,000 |
Total Current Assets | 66,000 | 66,000 |
Plant & Equipment, net | 60,000 | 40,000 |
Total Assets | 126,000 | 106,000 |
|
|
|
Current Liabilities | 20,000 | 30,000 |
Noncurrent Liabilities | 60,000 | 40,000 |
Total Liabilities | 80,000 | 70,000 |
Total Stockholders' Equity | 46,000 | 36,000 |
Total liabilities and Stockholders' Equity | $126,000 | $106,000 |
Additionally, Fox's Income Statement for 2020 is as follows:
Net sales (all credit sales) | $180,000 |
Cost of Goods Sold | 100,000 |
Gross margin | 80,000 |
Operating expenses | 30,000 |
Interest expense | 12,000 |
Net income before taxes | 38,000 |
Income tax | 9,500 |
Net income | $ 28,500 |
If Fox's income tax rate is 25%, what is the return on assets?
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