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Question 23 Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31, 2017 Dec. 31, 2017 Dec. 31,

Question 23

Selected financial data for Wilmington Corporation is presented below.

WILMINGTON CORPORATION

Balance Sheet

As of December 31, 2017

Dec. 31, 2017

Dec. 31, 2016

Current Assets

Cash and cash equivalents

$ 576,843

$ 305,088

Marketable securities

166,106

187,064

Accounts receivable (net)

258,387

289,100

Inventories

424,493

391,135

Prepaid expenses

55,369

25,509

Other current assets

83,053

85,029

Total Current Assets

1,564,251

1,282,925

Property, plant and equipment

1,384,217

625,421

Long-term investment

568,003

425,000

Total Assets

$3,516,471

$2,333,346

Current Liabilities

Short-term borrowings

$ 306,376

$ 170,419

Current portion of long-term debt

155,000

168,000

Accounts payable

254,111

286,257

Accrued liabilities

273,658

166,983

Income taxes payable

97,735

178,911

Total Current Liabilities

1,086,880

970,570

Long-term debt

500,000

300,000

Deferred income taxes

215,017

262,404

Total Liabilities

1,801,897

$1,532,974

Common stock

$ 425,250

$ 125,000

Additional paid-in capital

356,450

344,335

Retained earnings

932,874

331,037

Total Stockholders' Equity

1,714,574

800,372

Total Liabilities and Stockholders' Equity

$3,516,471

$2,333,346

Selected Income Statement Data - for the year ending December 31, 2017:

Net sales

$4,885,340

Cost of goods sold

(2,942,353

)

Selling expenses

(884,685

)

Operating income

1,058,302

Interest expense

(55,240

)

Earnings before income taxes

1,003,062

Income tax expense

(401,225

)

Net income

$ 601,837

Selected Statement of Cash Flow Data - for the year ending December 31, 2017:

Cash flows from operations

$1,456,084

Capital expenditures

$745,862

What was Wilmington Corporations return on net operating assets (RNOA) in 2017? Assume a statutory tax rate of 37%.

Select one:

A. 67.5%

B. 20.6%

C. 32.9%

D. 44.2%

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