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Please Answer both questions Shown below is selected information from the financial statements of Supreme Company Dollar amounts are in millions (except for the per
Please Answer both questions
Shown below is selected information from the financial statements of Supreme Company Dollar amounts are in millions (except for the per share data). 28 Income statement information: Net sales Cost of goods sold Operating expenses Net income Balance sheet information: Average total equity Average total assets $ 1,110 $ 490 $ 410 $ 330 eBook $ 1,800 $ 3,400 Supreme reported earnings per share for the year of $5 and paid cash dividends of $2 per share. At year-end, the Wall Street Journal listed Supreme's capital stock as trading at $82 per share. Supreme's gross profit rate was: Multiple Choice 44.14%. O O 29.73% o 18.92%. O O 55.86% Given below are comparative statements of financial position (balance sheets) and an income statement for Claret Corporation. 29 eBook Claret Corporation Balance Sheets Year 2 December 31 Cash $ 15,000 Accounts receivable 46,020 Inventory 31,900 Equipment (net) 56,600 Total $ 149,520 Accounts payable 25,400 Dividends payable 7,200 Long-term note payable 13,700 Capital stock, $5 par 72,200 Retained earnings 31,020 Total $ 149,520 January 1 $ 15,000 36,500 35,800 65,700 $ 153,000 28,000 3,300 13,700 72,200 35,800 $ 153,000 Claret Corporation Income Statement For the year ended Year 2 Sales Cost of goods sold Gross profit on sales Operating expenses Operating income Interest expense and income taxes Net income $ 228,200 137,480 $ 90,720 75,808 $ 14,912 8,800 $ 6,112 All sales were made on account. Cash dividends declared during the year totaled $10,892. Claret Corporation's inventory turnover for Year 2 is: Multiple Choice 89.90 days. 3.84 times. O 4.31 times. 4.06 timesStep by Step Solution
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