Question (9) Directions: Click the case link displayed above and use the information provided in Muebles Mexicanos, Part B, to answer this question: What was the company's pretax return on assets in 20Y3? 23.30 % 041.00 % 108.90 % 48.70% Muebles Mexicanos Balance Sheets (in $000s) As At December 31: 20Y1 202 20Y2 20Y3 ASSETS Current assets 42 $ 62 $ $ 51 Cash 28 135 44 Accounts receivable 173 210 317 Inventory 243 503 316 Total current assets 1307 Fixed assets 138 157 Gross fixed assets 202 73 82 115 Less: Accumulated depreciation 65 75 87 Net fixed assets 6 2 7 Other noncurrent assets 393 314 $ TOTAL ASSETS $ 597 LIABILITIES AND EQUITY Current liabilities 85 $ 177 $ 103 $ Short-term debt Current portion-LTD Accounts payable 4 4 104 65 51 76 42 34 Accrued expenses 7 5 3 Other current liabilities 177 368 219 Total current liabilities Long-term debt Total liabilities 4 8 12 372 227 189 Owners' equity 225 166 125 TOTAL LIABILITIES AND EQUITY 597 $ 393 $ 314 $ * Muebles Mexicanos Part B Muebles Mexicanos Income Statements (In $000s) Years Ended December 31: 20Y3 20Y2 20Y1 Sales $ 2,722 $ 1,500 $ 1,281 Cost of goods sold Gross profit 1,068 608 512 1,654 892 769 Selling, general, and administrative expense Depreciation expense Total SG&A expenses 1,307 690 584 40 24 23 1,347 714 607 Interest expense 39 23 21 Loss on sale of fixed assets Other expenses 8 0 t d In)open 15 6 0 Income before taxes 245 149 141 Taxes 106 68 62 Net Income ed by $ 139 79 Dividends 80 40 40 powing Retained earnings $ 59 41 39 actv 111: 111 0 Muebles Mexicanos Part B Muebles Mexicanos Statement of Cash Flow (in $000s) Year Ended December 31, 20Y3 OPERATING ACTIVITIES Net income $ 139 Adjustments to reconcile net income to net cash provided (used) by operating activities Depreciation Loss on disposition of fixed assets Changes in: 40 8 Accounts receivable (91) (107) Inventory Other noncurrent assets (5) Accounts payable 39 Accruals 34 Other current liabilities Net cash provided by (used in) operating activities 59 INVESTING ACTIVVITIES (Purchases) of fixed assets $ (80) Proceeds of sale of fixed assets 20 Net cash provided by (used in) investing activities $ (60) FINANCING ACTIVITIES Proceeds from short-term borrowing $ 74 (Payments) on longterm debt Cash dividends (paid) (4) (80) Net cash provided by (used in) financing activities $ (10) Increase (Decrease) in cash and cash equivalents $ (11) 2012 Beginning cash and cash equivalents 62 Ending cash and cash equivalents $ 51