Question
Settles Corporation has provided the following financial data: Balance Sheet Year 1 Year 2 Current Assets: cash: $142,000 $110,000 AR $104,000 $120,000 Inventory $119,000 $120,000
Settles Corporation has provided the following financial data:
Balance Sheet Year 1 Year 2
Current Assets:
cash: $142,000 $110,000
AR $104,000 $120,000
Inventory $119,000 $120,000
PP Expenses $37,000 $40,000
Total Current Assets $402,000 $390,000
Plant & Equip Net
Total Assets$1,119,000 $1,110,000
Liabilities & Stockholders Equity
Current Liabilities:
Accounts Payable: $156,000 $180,000
Accued liabilities: $84,000 $70,000
Notes Payable, short term: $66,000 $60,000
Total Current Liabilities: $306,000 $310,000
Bonds Payable $250,000 $250,000
Total Liabilities $556,000 $560,000
Stockholders Equity
Common Stock par value $4 $240,000 $240,000
Addtl Paid in Capital common stock $90,000 $90,000
Retained earning $233,000 $220,000
Total Stockholders Equity is $563,000 $560,000
Total Liabilities & SE $1,119,000 $1,110,000
INCOME STMT YEAR 2
Sales $1,360,000
COGS $850,000
Gross Margin $510,000
Operating Expense $4462,692
Net Operating Income $47,308
Interest Expense $19,000
Net income before taxes $28,308
Income Taxes $9,908
Net Income $18,400
Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on total assets for Year 2 is closest to:
2.75% | ||
1.64% | ||
1.65% | ||
2.76% |
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