Business
The Balance Sheets at the end of each of the first two years of operations indicate the following: 2006 2005 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 150,000 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 If Net Income is $115,000 and interest expense is $30,000 for 2006, what is the return on total assets for 2006 (round percent to one decimal place)
The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the companys fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,200; cost of goods sold, $1,440; selling expense, $215; general and administrative expense, $205; interest expense, $45; and gain on sale of investments, $85. Income tax expense has not yet been recorded. The income tax rate is 25%. Assume the companys accountant prepared a multiple-step income statement. a. What amount would appear in that statement for operating income? b. What amount would appear in that statement for nonoperating income?
The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales$14,500 Current assets$12,000 Debt$16,500 Costs 8,400 Fixed assets 29,000 Equity 24,500 Taxable income$6,100 Total$41,000 Total$41,000 Taxes (40%) 2,440 Net income$3,660 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %