Required information

$[$The following information applies to the questions displayed below.$]$

Comparative financial statements for Weaver Company follow:

$\backslash$table$[[\backslash$table$[[$Weaver Company$],[$Comparative Balance Sheet$],[$at December $31]],$This Year,Last Year$],[\backslash$table$[[$Assets$],[$Cash$]]],[\backslash$table$[[$Cash$]],$$$-18,],[\backslash$table$[[$Accounts receivable$],[$Inventory$]],\backslash$table$[[\backslash$table$[[334],[151]]]],\backslash$table$[[\backslash$table$[[229],[195]]]]],[$Prepaid expenses,$8,\backslash$table$[[190],[5]]],[,475,440],[,517,\backslash$table$[[\backslash$table$[[437],[72]]]]],[\backslash$table$[[$Property$,$ plant, and equipment$],[$Less accumulated depreciation$]],82],[\backslash$table$[[$Net property, plant, and equipment$],[$Long$-$term investments$]],435,365],[24,31],[$Total assets,$$934,$$$836$

Required information

$[$The following information applies to the questions displayed below.$]$

Comparative financial statements for Weaver Company follow:

$\backslash$table$[[\backslash$table$[[$Weaver Company$],[$Comparative Balance Sheet$],[$at December $31]],$This Year,Last Year$],[\backslash$table$[[$Assets$],[$Cash$]]],[$Cash$,$$$-18,],[\backslash$table$[[$Accounts receivable$],[$Inventory$]],\backslash$table$[[\backslash$table$[[334],[151]]]],\backslash$table$[[\backslash$table$[[229],[195]]]]],[\backslash$table$[[$Prepaid expenses$],[$Total current assets$]],8,5],[,475,440],[,517,\backslash$table$[[\backslash$table$[[437],[72]]]]],[\backslash$table$[[$Property$,$ plant, and equipment$],[$Less accumulated depreciation$]],82],[\backslash$table$[[$Net property, plant, and equipment$],[$Long$-$term investments$]],435,365],[24,31],[$Total assets,$$934,$$$836$

Required information

$[$The following information applies to the questions displayed below.$]$

Comparative financial statements for Weaver Company follow:

$\backslash$table$[[\backslash$table$[[$Weaver Company$],[$Comparative Balance Sheet$],[$at December $31]],$This Year,Last Year$],[$Assets$],[\backslash$table$[[$Cash$],[$Arrounte poroivahlo$]],$$$-18,$$$11$

Comparative Balance Sheet

Assets

This Year

Last Year

Current assets:

Cash

Marketable securities

Accounts receivable, net

Inventory

Prepaid expenses

Total current assets

Plant and equipment, net

Total assets

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities

Note payable, $10\%$

Total liabilities

Stockholders' equity:

Common stock, $$70$ par value

Retained earnings

Total stockholders' equity

Total liabilities and stockholders' equity

$\backslash$table$[[$$$890,000,$$$1,130,000$

Current ratio $2\mathrm{.}3$

Acid test ratio $1\mathrm{.}0$

Average collectin period $40$ days

Average sale period $60$ days

Return on assets $8\mathrm{.}5\%$

Debt to equity ratio $0\mathrm{.}7$

Times interest earned ratio $5\mathrm{.}8$

Price earnings ratio $10$

Required: the return on total assets $($total assets at the begining of last year were $13,000,000)$

The answer is not $8\mathrm{.}8\%$ and $12\%$