Question
The following information pertains to Sheridan Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were
The following information pertains to Sheridan Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
| Assets | |
|---|---|
| Cash and short-term investments | $ 41000 |
| Accounts receivable (net) | 27000 |
| Inventory | 30000 |
| Property, plant and equipment | 219000 |
| Total Assets | $317000 |
| Liabilities and Stockholders Equity | |
|---|---|
| Current liabilities | $ 61000 |
| Long-term liabilities | 76000 |
| Stockholders equitycommon | 180000 |
| Total Liabilities and Stockholders Equity | $317000 |
| Income Statement | |
|---|---|
| Sales (net) | $ 80000 |
| Cost of goods sold | 42000 |
| Gross profit | 38000 |
| Operating expenses | 29000 |
| Net income | $ 9000 |
| Number of shares of common stock | 8000 |
| Market price of common stock | $24 |
| Dividends per share | 1.00 |
What is the return on common stockholders equity for Sheridan?
31.2%
10.0%
5.0%
2.8%
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
