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Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years
Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-Common stock Retained earnings Year 2 Year 1 $617,600 $579,400 61,900 42,400 903,500 659,200 107,400 89,000 275,400 234,600 94,700 94,700 570,800 570,800 60,900 473,800 60,900 231,000 Using the balance sheets for Kellman Company, if net income is $112,400 and interest expense is $46,500 for Year 2, what is the return on total assets for the year (rounded to two decimal places)? Oa. 4.60% b. 11.10% Oc. 8.77% Od. 7.10%
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