The balance sheets at the end of each of the first two years of operations indic

Question

The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Compan Year 1 $617,553 $586,794 50,747 916,614 638,538 81,325 11,474 248,787 88,527 509,625 66,246 517,692 281,569 Year 2 Total current assets Total investments 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 Using the balance sheets for Kellman Company, if net income is $111,596 and interest expense is $43,465 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Select the correct answer 63,249 103,852 88,527 509,625 66,246 0 10.49% 08.75% 06.99% 10.79%

Explanation / Answer

Return on Assets = Net Income/Total Assets

= 111596/(617553+63249+916614)

= 6.99%

Option C is Correct

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