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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 $626,851 $566,807 Total Investments 67,283 54,112 Total property, plant, and equipment 918,544 750,396 Total current liabilities 116,129 86,400 Total long-term Ilabilities 289,088 225,608 Preferred 9% stock, $100 par 90,837 90,837 Common stock, $10 par 551,912 551,912 Pald-in capital in excess of par-common stock 63,216 63,216 Retained earnings 501,496 353,342 Using the balance sheets for Kellman Company, If net income is $100,904 and interest expense is $46,045 for Year 2, what is the return on total assets for the year round percent to two decimal points)? a. 890% b. 6.26% c. 7.36% d. 9.85%
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