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The following information pertains to Newman Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were
The following information pertains to Newman 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 | $40,000 |
Accounts receivable (net) | 30,000 |
Merchandise inventory | 25,000 |
Property, plant, and equipment | 215,000 |
Total assets | $310,000 |
Liabilities and Stockholders' Equity | |
Current liabilities | $60,000 |
Long-term liabilities | 95,000 |
Stockholders' equitycommon | 155,000 |
Total liabilities and stockholders' equity | $310,000 |
Income Statement | |
Sales | $90,000 |
Cost of merchandise sold | 45,000 |
Gross profit | $45,000 |
Operating expenses | (16,200) |
Interest expense | (3,800) |
Net income | $25,000 |
Number of shares of common stock | 6,000 | |
Market price of common stock | $40.00 | |
Dividends per share | $1.00 | |
Net cash flows from operating activities | $40,000 |
What is the return on total assets for Newman Company (rounded to one decimal place)?
a.10.5%
b.9.3%
c.6.8%
d.16.1%
25. MC.17.123
A company reports the following:
Net income | $160,000 |
Preferred dividends | $10,000 |
Shares of common stock outstanding | 20,000 |
Market price per share of common stock | $35 |
The companys earnings per share on common stock is
a.$8.50
b.$35.00
c.$13.33
d.$7.50
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