Question
The following information pertains to Wildhorse Co. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were
The following information pertains to Wildhorse Co. 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 $ 47100
Accounts receivable (net) 35700
Inventory 25200
Property, plant and equipment 214000
Total Assets $322000
Liabilities and Stockholders Equity
Current liabilities $ 51500
Long-term liabilities 93700
Stockholders equitycommon 176800
Total Liabilities and Stockholders Equity $322000
Income Statement
Sales revenue $118000
Cost of goods sold 71400
Gross profit 46600
Operating expenses 15000
Net income $ 31600
Number of shares of common stock 5300
Market price of common stock $19
Dividends per share on common stock 7.8
Cash provided by operations $31000
What is the return on assets for this company?
17.9%
9.6%
9.8%
14.5%
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