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Use this information for Kellman Company to answer the question that follows. The balance sheets at the end of each of the first two years
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Use this information for Kellman Company to answer the question that follows.
The balance sheets at the end of each of the first two years of operations indicate the following:
Kellman Company Year 2 Year 1 Total current assets $603,500 $565,600 Total investments 61,900 42,500 Total property, plant, and equipment 862,000 767,600 Total current liabilities 110,700 85,100 Total long-term liabilities 289,100 247,400 Preferred 9% stock, $100 par 92,500 92,500 Common stock, $10 par 590,200 590,200 Paid-in capital in excess of parCommon stock 68,300 68,300 Retained earnings 376,600 292,200
Using the balance sheets for Kellman Company, if net income is $112,000 and interest expense is $30,000 for Year 2, what is the return on stockholders' equity for Year 2 (rounded to two decimal places)?
a.10.82%
b.11.78%
c.10.32%
d.11.28%
Use this information for Kellman Company to answer the question that follows.
The balance sheets at the end of each of the first two years of operations indicate the following:
Kellman Company | ||
Year 2 | Year 1 | |
Total current assets | $603,500 | $565,600 |
Total investments | 61,900 | 42,500 |
Total property, plant, and equipment | 862,000 | 767,600 |
Total current liabilities | 110,700 | 85,100 |
Total long-term liabilities | 289,100 | 247,400 |
Preferred 9% stock, $100 par | 92,500 | 92,500 |
Common stock, $10 par | 590,200 | 590,200 |
Paid-in capital in excess of parCommon stock | 68,300 | 68,300 |
Retained earnings | 376,600 | 292,200 |
Using the balance sheets for Kellman Company, if net income is $112,000 and interest expense is $30,000 for Year 2, what is the return on stockholders' equity for Year 2 (rounded to two decimal places)?
a.10.82%
b.11.78%
c.10.32%
d.11.28%
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