Income Statement For the year ended December 31, 2010 Balance Sheet Dec 31 2009 2010 Sales (credit $100,000 Cosh $2,500 $4,000 Less Cost of goods sold 70,000 Accounts receivable 6,000 7,000 Gross profit 30.000 Inventories 8.500 9,000 Less Operating expenses 16.000 Land 7,000 7.000 Less Depreciation 1,000 Other fixed assets 15,000 15,500 EBIT 13.000 Accumulated depreciation (5,000) (6,000) Less: Interest expense 500 Total assets $34.000 $36,500 EBT 12,500 Less: Taxes 1.900 Accounts payable $4,000 $5,000 Net Income $10,600 Bonds 6,000 6,500 Total common shares outstanding 10,000 Common stock 15,000 15,000 Market price Dividend Paid 4.00 9,600 Retained earnings 9,000 10,000 Total Liabilities & Equity $34,000 $36,500 Calculate return on assets for the company for 2010 using information from the above financial statements. Multiple Choice