36. Herman Corporation had net income of $160,000 and paid dividends of $40,000 to common stockholders and $20,000 to preferred stockholders in 2007. Herman Corporation's common stockholders' equity at the beginning and end of 2007 was $450,000 and S550,000, respectively. Herman Corporation's return on common stockholders' equity is a. 32%. b 28%. 24%. d. 20%. 37.Which of the following activities will most likely result in a reported loss on the income statement? A) The sale of inventory to customers B The sale of old equipment C) The wages and benefits paid to employees D) None of them would result in a loss 38. At the beginning of 20D, Braga Company had office supplies inventory of $800. Dunng 20D, the company purchased office supplies amounting to $2,500 (paid for in cash and debited to office supplies inventory). At December 31, 20D, the end of the accounting year, a count of office supplies still on hand reflected $500. The adjusting entry Braga Company will record on December 31, 20D to adjust the office supplies inventory account would include a A debit to office supplies expense for $2,800. B) debit to office supplies inventory for $2,800. C) debit to supplies expense.for $2,500. D) credit to office supplies inventory for $500. 39.If a current ratio has been increasing over the past several years, which of the following would cause the ratio to rise? A) A decrease in accounts payable. B) An increase in inventories. C) An increase in short-term borrowings. D) Both A and B would cause the ratio to rise. 40.If the net profit margin for Papa John's is 3.4% in 2000 and Domino's ratio is 2.2% in 2000, which of the following statements is true? A) Domino's management is doing a better job of generating sales and controlling expenses than Papa John's management B) Papa John's is operating at a higher level of capacity than Domino's C) Papa John's lower ratio may be caused by different business strategies and being at a different development stage in comparison to Domino's D) All of the above are true bonol ed eum bnn Insmieovr nnan