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Please refer to the next Table for the following questions. ssets: ash and marketable securities ccounts receivable $600,00 900,00 1,500,00 75,00 3,075,00 8,000,00 (2,075,000 $5,925,00
Please refer to the next Table for the following questions. ssets: ash and marketable securities ccounts receivable $600,00 900,00 1,500,00 75,00 3,075,00 8,000,00 (2,075,000 $5,925,00 $9,000,00 Inventories repaid expenses otal current assets ixed assets ess: accum. depr. Net fixed assets Total assets Liabilities: ccounts payable Notes payable $800,00 700,00 50,00 $1,550,00 2,500,000 4,950.00 ccrued taxes Total current liabilities Long-term debt wner's equity (1 million shares of common stock outstanding) Total liabilities and owner's equit $9.000,000 Net sales (all credit) $10,000,00 Less: Cost of goods sold elling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income (3,000,000) (2,000,000) (250,000 (200,000 4,550,000 (1,820,000) $2,730,00 12. Based on the information in Table 4-1, assuming that no preferred dividends were paid, the return on common equity is A) 55.15%. B) 44.86%. C) 38.83% D) 17.56%
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