The balance sheets at the end of each of the first two years of operations indicate the following: 2011 $560,000 40,000 700,000 65,000 250,000 100,000 600,000 75,000 210,000 2012 $600,000 Total current assets Total investments 60,000 900,000 125,000 350,000 100,000 600,000 75,000 310,000 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 If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point)? 9.3% 2. a. b. 10.1% 8.0% c. d. 7.4% LO: 17-03 OBJ: Moderate DIF: ANS: B PTS: 1 Bloom's: Knowledge KEY: NAT: BUSPROG: Analytic
The balance sheets at the end of each of the first two years of operations indicate the following: 2011 $560,000 40,000 700,000 65,000 250,000 100,000 600,000 75,000 210,000 2012 $600,000 Total current assets Total investments 60,000 900,000 125,000 350,000 100,000 600,000 75,000 310,000 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 If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point)? 9.3% 2. a. b. 10.1% 8.0% c. d. 7.4% LO: 17-03 OBJ: Moderate DIF: ANS: B PTS: 1 Bloom's: Knowledge KEY: NAT: BUSPROG: Analytic
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 53P: Balance sheets for Brierwold Corporation follow: Additional transactions were as follows: a....
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