Question
use the following information to answer question 3 & 4 The following data was taken from the accounting records of White Oleander Corporation: 2020 2019
use the following information to answer question 3 & 4
The following data was taken from the accounting records of White Oleander Corporation:
2020 2019
Total assets $950,000 $850,000
Total liabilities 250,000 240,000
Preferred shares 75,000 75,000
Common shares 300,000 300,000
Retained earnings 325,000 235,000
Additional data:
Net income 140,000
Interest expense 25,000
Sales revenue 980,000
3. The return on assets for 2020 is
a) 15.6%.
b) 16.5%.
c) 17.4%.
d) 18.5%.
e)None of the above
Answer:
4. The return on equity for 2020 is
a) 20.0%.
b) 21.4%.
c) 26.7%.
d) 46.7%.
e)None of the above
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