The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow.AssetsCash and short-term investments$40,936Accounts receivable (net)32,902Inventory36,625Property, plant, and equipment280,196Total assets$390,659 Liabilities and Stockholders' Equity Current liabilities$69,773 Long-term liabilities90,745 Stockholders' equity—Common230,141 Total liabilities and stockholders' equity$390,659 Income Statement Net Sales$98,683 Cost of goods sold(39,473) Gross margin59,210 Operating expenses(29,056) Interest expense (4,934) Net income$25,220 Number of shares of common stock outstanding5,105 Market price of common stock$32 Total dividends paid$9,000 Cash provided by operations$40,936Using the data provided for Diane Company, what is the return on total assets?

Name: The following information pertains to Diane Company. Assume that all b
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Description: The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow.AssetsCash and

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow.

Assets
Cash and short-term investments	$40,936
Accounts receivable (net)	32,902
Inventory	36,625
Property, plant, and equipment	280,196
Total assets	$390,659


Liabilities and Stockholders' Equity
Current liabilities	$69,773
Long-term liabilities	90,745
Stockholders' equity—Common	230,141
Total liabilities and stockholders' equity	$390,659

Income Statement
Net Sales	$98,683
Cost of goods sold	(39,473)
Gross margin	59,210
Operating expenses	(29,056)
Interest expense	(4,934)
Net income	$25,220

Number of shares of common stock outstanding	5,105
Market price of common stock	$32
Total dividends paid	$9,000
Cash provided by operations	$40,936

Using the data provided for Diane Company, what is the return on total assets?

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