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The balance sheets at the end of each of the first two years of operations indicate the following: Year 2 Year 1 Total current assets

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The balance sheets at the end of each of the first two years of operations indicate the following: Year 2 Year 1 Total current assets $630,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities 150,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, 5100 par 100,000 100,000 Common stock. $10 par 600,000 600,000 Paid in capital in excess of par--common stock 60,000 60.000 Retained earnings 330,000 210.000 If net income is $125,000 and interest expense is $30,000 for Year 2, what is the return on total assets for Year 27 (Round percent to one decimal point.) a. 8.7% Ob. 93.2% O c. 10.7% Od. None of these choices are correct

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