The Following Financial Statement Information Is Available for Penn Corporation

question 106

Multiple Choice

The following financial statement information is available for Penn Corporation: $\begin{array}{lrr}&2017&2016\\\text { Stockholders' equity - common } & \$ 350,000 & \$ 270,000 \\\text { Net sales } & 784,000 & 697,000 \\\text { Cost of goods sold } & 406,000 & 377,000 \\\text { Net income } & 115,000 & 80,000 \\\text { Inc tax expense } & 48,000 & 29,000 \\\text { Interest expense } & 14,000 & 14,000 \\\text { Dividends paid to preferred } & & \\\quad \text { stockholders } & 24,000 & 20,000 \\\text { Dividends paid to common } & & \\\quad \text { stockholders } & 15,000 & 10,000\end{array}$ The return on common stockholders' equity for 2017 is

• A)21.7%.
• B)32.9%.
• C)28.6%.
• D)29.4%.

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Definitions:

Evolution

The process through which species of organisms undergo changes over time through genetic variation and natural selection.

Cellular Respiration

A set of metabolic processes that take place within cells to convert biochemical energy from nutrients into ATP, and then release waste products.

Photosynthesis

The process by which green plants, algae, and certain bacteria convert light energy, water, and carbon dioxide into oxygen and glucose.

Carbon Dioxide

An invisible, unscented gas generated through the combustion of carbon-based and organic materials, as well as by the respiration process, which is consumed by plants during photosynthesis.