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The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales
The following information pertains to Diane 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 Accounts receivable (net) Inventory Property, plant, and equipment Total Assets Liabilities and Stockholders' Equity $35,112 30,963 28,302 213,578 $307,955 Current liabilities $64,294 Long-term liabilities 91,801 Common stock 86,950 Retained earnings 64,910 Total liabilities and stockholders' equity $307,955 Sales Cost of goods sold Gross margin Income Statement $89,896 35,958 $53,938 Sales Cost of goods sold Gross margin Operating expenses Interest expense Net income Income Statement $89,896 35,958 $53,938 (24,548) (4,495) $24,895 Number of shares of common stock outstanding Market price of common stock Total dividends paid Cash provided by operations What is the return on total assets for Diane Company? a. 9.5% Ob. 2.9% Oc. 1.3% d. 8.3% 6,491 $32 $9,000 $30,000
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