Equator Corporation has the following data available on December 31 for the year just ended:Average total assets for the year $ 800,000Total stockholders' equity at the beginning of the yearTotal stockholders' equity at the end of the year 600,000Net Income 250,000Interest expense 30,000Preferred dividends 50,000525,000The company’s return on assets for the year is closest toa. 21.25%.b. 25.00%.c. 31.25%.d. 44.44%.
Equator Corporation has the following data available on December 31 for the year just ended:Average total assets for the year $ 800,000Total stockholders' equity at the beginning of the yearTotal stockholders' equity at the end of the year 600,000Net Income 250,000Interest expense 30,000Preferred dividends 50,000525,000The company’s return on assets for the year is closest toa. 21.25%.b. 25.00%.c. 31.25%.d. 44.44%.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 23EB: Bastion Corporation earned net income of $200,000 this year. The company began the year with 10,000...
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Equator Corporation has the following data available on December 31 for the year just ended:
Average total assets for the year $ 800,000
Total stockholders' equity at the beginning of the year
Total stockholders' equity at the end of the year 600,000
Net Income 250,000
Interest expense 30,000
Preferred dividends 50,000
525,000
The company’s return on assets for the year is closest to
a. 21.25%.
b. 25.00%.
c. 31.25%.
d. 44.44%.
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