Question
The following information pertains to Skysong, Inc. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were
The following information pertains to Skysong, Inc. 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 $ 46000
Accounts receivable (net) 50000
Inventory 24000
Property, plant and equipment 244000
Total Assets $364000
Liabilities and Stockholders Equity
Current liabilities $ 55000
Long-term liabilities 75000
Stockholders equitycommon 234000
Total Liabilities and Stockholders Equity $364000
Income Statement
Sales revenue $87000
Cost of goods sold 45000
Gross profit 42000
Operating expenses 23436
Net income $ 18564
Number of shares of common stock 19000
Market price of common stock $25
Dividends per share on common stock 8.8
Cash provided by operations $40040
What is the return on assets for this company?
5.1%
27.7%
12.7%
11.0%
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