Question

Use this information for Kellman Company to answer the question that follow. The balance sheets at...

Use this information for Kellman Company to answer the question that follow.

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 $601,300 $554,700
Total investments 65,500 53,500
Total property, plant, and equipment 885,600 794,300
Total current liabilities 108,600 83,300
Total long-term liabilities 290,300 225,400
Preferred 9% stock, $100 par 83,400 83,400
Common stock, $10 par 574,200 574,200
Paid-in capital in excess of par—Common stock 66,300 66,300
Retained earnings 429,600 369,900

Using the balance sheets for Kellman Company, if net income is $115,700 and interest expense is $34,900 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?

a.8.25%

b.5.47%

c.10.19%

d.7.45%

Homework Answers

Answer #1

Return on total assets is calculated by way of dividing net income for the year with average total assets

Average total assets is calculated by way of summation of total assets at the beginning of the year with total assets at the end of the year divided by two

Answer is option :(b)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
11 Use this information for Kellman Company to answer the question that follow. The balance sheets...
11 Use this information for Kellman Company to answer the question that follow. 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 $610,100 $574,800 Total investments 60,000 40,500 Total property, plant, and equipment 898,900 693,700 Total current liabilities 107,400 84,900 Total long-term liabilities 283,500 228,500 Preferred 9% stock, $100 par 88,500 88,500 Common stock, $10 par 548,800 548,800 Paid-in capital in excess...
1. Use this information for Kellman Company to answer the question that follow. The balance sheets...
1. Use this information for Kellman Company to answer the question that follow. 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 $619,100 $587,500 Total investments 61,200 51,000 Total property, plant, and equipment 881,400 694,300 Total current liabilities 111,200 88,100 Total long-term liabilities 304,700 230,800 Preferred 9% stock, $100 par 95,600 95,600 Common stock, $10 par 561,300 561,300 Paid-in capital in excess...
Kellman Company Year 2 Year 1 Total current assets $627,900 $564,400 Total investments 65,500 52,800 Total...
Kellman Company Year 2 Year 1 Total current assets $627,900 $564,400 Total investments 65,500 52,800 Total property, plant, and equipment 928,300 722,500 Total current liabilities 101,100 86,500 Total long-term liabilities 294,900 243,500 Preferred 9% stock, $100 par 97,700 97,700 Common stock, $10 par 549,800 549,800 Paid-in capital in excess of par—Common stock 67,100 67,100 Retained earnings 511,100 295,100 Using the balance sheets for Kellman Company, if net income is $100,400 and interest expense is $34,800 for Year 2, and the...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 36,724 $ 43,360 $ 44,273 Accounts receivable, net 106,437 73,604 60,801 Merchandise inventory 132,473 99,268 63,502 Prepaid expenses 12,304 11,610 5,018 Plant assets, net 340,789 314,164 273,606 Total assets $ 628,727 $ 542,006 $ 447,200 Liabilities and Equity Accounts payable $ 151,856 $ 91,599 $ 58,440 Long-term notes payable secured by mortgages on plant assets 115,837 124,661 98,831 Common stock,...
The balance sheets at the end of each of the first two years of operations indicate...
The balance sheets at the end of each of the first two years of operations indicate the following: 2017 2016 Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities 125,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in capital in excess of par--common stock 60,000 60,000 Retained earnings 325,000 210,000 Based on the above information, if net income...
Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 31,484...
Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 31,484 $ 36,802 $ 38,366 Accounts receivable, net 87,707 62,528 51,155 Merchandise inventory 113,616 82,626 55,575 Prepaid expenses 9,647 9,379 4,136 Plant assets, net 275,633 255,292 234,468 Total assets $ 518,087 $ 446,627 $ 383,700 Liabilities and Equity Accounts payable $ 126,424 $ 75,480 $ 49,129 Long-term notes payable secured by mortgages on plant assets 98,374 105,806 86,494 Common stock, $10 par value 163,500 163,500...
Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 27,791...
Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 27,791 $ 31,529 $ 33,175 Accounts receivable, net 77,388 55,177 43,349 Merchandise inventory 96,307 72,912 46,633 Prepaid expenses 9,037 8,611 3,612 Plant assets, net 251,272 229,870 208,331 Total assets $ 461,795 $ 398,099 $ 335,100 Liabilities and Equity Accounts payable $ 116,137 $ 66,606 $ 44,676 Long-term notes payable secured by mortgages on plant assets 85,949 93,394 75,538 Common stock, $10 par value 163,500 163,500...
Dawson Company's balance sheet information at the end of 2016 and 2017 is as follows: 2016...
Dawson Company's balance sheet information at the end of 2016 and 2017 is as follows: 2016 2017 Current assets $ (a) $25,000 Long-term liabilities (b) 34,900 Total contributed capital (c) (g) Long-term investments 19,200 (h) Retained earnings 50,300 58,100 Total liabilities (d) (i) Intangible assets 10,400 9,000 Current liabilities 14,500 13,000 Common stock, $5 par (e) 20,000 Total assets 141,800 (j) Additional paid-in capital 15,000 (k) Property, plant, and equipment (net) 85,700 92,800 Accumulated other comprehensive income 7,000 8,000 Total...
Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year,...
Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets...
Common-Sized Balance Sheets The following end-of-the-year balance sheets (in millions) were adapted from recent financial statements...
Common-Sized Balance Sheets The following end-of-the-year balance sheets (in millions) were adapted from recent financial statements of Apple (AAPL). Year 1 Year 2 Current assets: Cash $13,844 $21,120 Marketable securities 11,233 20,481 Accounts receivable 27,219 30,343 Inventory 2,111 2,349 Other 14,124 15,085 Total current assets $68,531 $89,378 Long-term assets: Long-term marketable securities $130,162 $164,065 Property, plant, and equipment 20,624 22,471 Other long-term assets 12,522 14,565 Total long-term assets $163,308 $201,101 Total assets $231,839 $290,479 Current liabilities: Accounts payable and similar...