Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please refer to Table 4minus1 for the following questions. Table 4minus1 Stewart Company Balance Sheet Assets: Cash and marketable securities $600,000 Accounts receivable 900,000 Inventories

Please refer to Table

4minus1

for the following questions.

Table

4minus1

Stewart Company

Balance Sheet

Assets:

Cash and marketable securities

$600,000

Accounts receivable

900,000

Inventories

1,500,000

Prepaid expenses

75,000

Total current assets

$3,075,000

Fixed assets

8,000,000

Less: accum. depr.

(2,075,000)

Net fixed assets

$5,925,000

Total assets

$9,000,000

Liabilities:

Accounts payable

$800,000

Notes payable

700,000

Accrued taxes

50,000

Total current liabilities

$1,550,000

Longminusterm

debt

2,500,000

Owner's equity (1 million shares of common stock outstanding)

4,950,000

Total liabilities and owner's equity

$9,000,000

Net sales (all credit)

$10,000,000

Less: Cost of goods sold

(3,000,000)

Selling and administrative expense

(2,000,000)

Depreciation expense

(250,000)

Interest expense

(200,000)

Earnings before taxes

4,550,000

Income taxes

(1,820,000)

Net income

$2,730,000

Based on the information in Table the OROA is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Marshall B. Romney

8th Edition

0201357216, 9780201357219

More Books

Students also viewed these Accounting questions