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QUESTION 2 The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets

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QUESTION 2 The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, S10 par Paid-in capital in excess of par-Common stock Retained earnings Year 2 $600,000 60,000 900,000 125,000 350,000 00,000 600,000 75,000 310,000 Year 1 $560,000 40,000 700,000 65,000 250,000 100,000 600,000 75,000 210,000 Using the balance sheets for Kellman Company, if net income is $150,000 and interest expense is $20,000 for Year 2, what is the return on total assets for the yea a. 10.494 b. 8.49 c 11.9% d. 10.596

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