Question
The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total
The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $607,308 $555,105 Total investments 66,098 44,074 Total property, plant, and equipment 948,413 656,613 Total current liabilities 116,379 88,852 Total long-term liabilities 318,394 249,970 Preferred 9% stock, $100 par 84,433 84,433 Common stock, $10 par 510,769 510,769 Paid-in capital in excess of par-common stock 68,646 68,646 Retained earnings 523,198 253,122 Using the balance sheets for Kellman Company, if net income is $111,990 and interest expense is $37,302 for Year 2, what is the return on total assets for the year (round percent to two decimal points)?
The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Year 2 Year 1 $607,308 $555,105 66,098 44,074 948,413 656,613 116,379 88,852 318,394 249,970 84,43384,433 510,769 510,769 68,646 68,646 523,198 253,122 Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings Using the balance sheets for Kellman Company, if net income is $111,990 and interest expense is $37,302 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? O a. 8.92% Ob. 10.65% c. 10.38% Od. 6.91%Step by Step Solution
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