Question
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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