Answered step by step
Verified Expert Solution
Question
1 Approved Answer
AAA Corporation December 31 Balance Sheets (in thousands of dollars) 2023 2022 Assets Cash 92,312.00 $ 70,491.00 Accounts receivable S 43,777.00 $ 42,001.00 Inventories
AAA Corporation December 31 Balance Sheets (in thousands of dollars) 2023 2022 Assets Cash 92,312.00 $ 70,491.00 Accounts receivable S 43,777.00 $ 42,001.00 Inventories $ 44,750.00 $ 31,247.00 Total current assets S 180,839.00 $ 143,739.00 Net fixed assets S 130,985.00 $ 124,780.00 Total assets S 311,824.00 $ 268,519.00 Liabilities and equity Accounts payable 30,761.00 $ 28,850.00 Accruals $ 30,477.00 $ 15,473.00 Notes payable 16,717.00 $ 10,075.00 Total current liabilities $ 77,955.00 $ 54,398.00 Long-term debt S 76,264.00 $ 49,850.00 Total liabilities $ 154,219.00 $ 104,248.00 Common stock $ 100,000.00 $ 100,000.00 Retained earnings Total common equity Total liabilities and equity $ 57,605.00 $ 4,248.00 $ $ 157,605.00 $ 311,824.00 $ 164,271.00 268,519.00 AAA's revenues for 2023 were $252,500 and the firm's cost of goods sold (COGS) was 57.92% of its revenues. All other pre-tax operating expenses including depreciation and amortization were $32,740.16, total interest expense was $11,082.71, and the corporate tax rate was 26.45%. Given the information, AAA's return on equity (ROE) is closest to O A. 23.38%. O B. 25.45%. OC. 28.53%. D. 30.87%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started