Exhibit 6-2 Given the Following Information for the Green Company

question 8

Multiple Choice

Exhibit 6-2 Given the following information for the Green Company:
$\begin{array}{ll}\text { Net sales (all on account) } & \$ 5,200,000 \\\text { Interest expense } & 240,000 \\\text { Income tax expense } & 280,000 \\\text { Net income } & 420,000 \\\text { Income tax rate } & 40 \%\\\text { Total assets: }\\&\text { January } 1,2010 & \$ 1,800,000 \\&\text { December } 31,2010 & 2,400,000\\\text { Stockholders' equity: }\\&\text { January } 1,2010 & 1,500,000 \\&\text { December } 31,2010 & 1,600,000\\\text { Current assets, December } 31,2010 & 700,000 \\\text { Quick assets, December } 31,2010 & 400,000 \\\text { Current liabilities, December 31, 2010 } & 300,000\\\text { Net accounts receivable: }\\&\text { January } 1,2010 & 200,000 \\&\text { December } 31,2010 & 180,000\end{array}$
- Refer to Exhibit 6-2.Green's return on stockholders' equity for 2010 was

• A)16.3%
• B)26.3%
• C)27.1%
• D)28.0%

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Definitions:

Hog Farmer

An individual or business involved in raising and breeding pigs for meat production, a key player in the agriculture sector.

Hog Futures

Financial contracts that obligate the buyer to purchase, and the seller to sell, a specific quantity of hogs at a predetermined price at a future date.

Limit Risk

Strategies or mechanisms implemented to reduce the potential for financial loss in investments.

Sell

To sell is to exchange a product, service, or asset for money or to dispose of it into the market.