What is the rate earned on total assets for this company?
-The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. What is the rate earned on stockholders' equity?
A) 7.3%
B) 13.6%
C) 20.5%
D) 40.9%

Question

What is the rate earned on total assets for this company?
-The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.  What is the rate earned on stockholders' equity?
A) 7.3% 
B) 13.6% 
C) 20.5% 
D) 40.9%

Quizplus · Accepted Answer

The rate earned on stockholders' equity is calculated using the formula: Net Income / Average Stockholders' Equity. Using the information provided in the question, we can calculate the net income as $2,080,000 and the average stockholders' equity as $15,300,000. Therefore, the rate earned on stockholders' equity would be 13.6% (i.e., $2,080,000 / $15,300,000).

What Is the Rate Earned on Total Assets for This