The following information pertains to Blue Spruce Corp.. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 41000 Accounts receivable (net) 37000 Inventory 36000 Property, plant and equipment 244000 Total Assets $358000 Liabilities and Stockholders’ Equity Current liabilities $ 68000 Long-term liabilities 84000 Stockholders’ equity—common 206000 Total Liabilities and Stockholders’ Equity $$358000 Income Statement Sales revenue $83000 Cost of goods sold 44000 Gross profit 39000 Operating expenses 19000 Net income $ 20000 Number of shares of common stock 15000 Market price of common stock $29 Dividends per share on common stock 2 Cash provided by operations $37000 What is the return on assets for this company? 27% 5.6% 12% 10%
Answer- The return on assets for this company= 5.6%.
Explanation- Return on assets = (Net income/Total assets)*100
= ($20000/$358000)*100
= 5.6%
The following information pertains to Blue Spruce Corp.. Assume that all balance sheet amounts represent both average an...
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