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Use the following to answer questions 43-46: The following information pertains to Cashe Company. Assume that all balance sheet amounts represent both average and ending
Use the following to answer questions 43-46: The following information pertains to Cashe 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 Accounts receivable (net) Inventory Property, plant and equipment Total Assets $40,000 30,000 25,000 215,000 $310.000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity-common Total Liabilities and Stockholders' Equity $60,000 95,000 155.000 $310.000 Income Statement Sales Cost of goods sold Gross margin Operating expenses Net income $90,000 45,000 45,000 20.000 $25.000 Pg. 13 43. What is the return on assets for this company? A) 6.8% B) 10.5% C) 8.1% D) 16.1% 44. What is the profit margin for this company? A) 50.0% B) 55.6% C) 23.5% D) 27.8% 45. What is the return on common stockholders' equity for this company? A) 7.3% B) 16.1% C) 23.5% D) 53.3% 46. What is the price-earnings ratio for this company? A) 6 times B) 4.2 times C) 8 times D) 4.8 times
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