Question
The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were
The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $36,402 Accounts receivable (net) 30,477 Inventory 31,795 Property, plant, and equipment 252,216 Total Assets $350,890 Liabilities and Stockholders' Equity Current liabilities $69,657 Long-term liabilities 98,492 Common stock, $20 par 130,440 Retained earnings 52,301 Total Liabilities and stockholders' equity $350,890 Income Statement Sales $86,333 Cost of goods sold 38,850 Gross margin $47,483 Operating expenses 23,672 Net income $23,811 Number of shares of common stock 6,522 Market price of common stock $20 Dividends per share $1.00 Cash provided by operations $40,000 What is the return on stockholders' equity?
a.5.4% b.45.5% c.1.2% d.3.7%
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