Examlex

Solved

The Following Information Pertains to Sampson Company What Is the Return on Common Stockholders' Equity for Sampson

question 88

Multiple Choice

The following information pertains to Sampson Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit.  Assets  Cash and short-term investments $45,000 Accounts receivable (net)  25,000 Inventory 20,000 Property, plant and equipment 230,000 Total Assets $320,000 Liabilities and Stockholders’ Equity  Current liabilities $50,000 Long-term liabilities 90,000 Stockholders’ equity-common 180,000 Total Liabilities and Stockholders’ Equity $320,000 Income Statement  Sales $150,000 Cost of goods sold 66,000 Gross profit 84,000 Operating expenses 30,000 Net income $54,000 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share 50\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & {230,000} \\\quad \text { Total Assets } & \$320,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity-common } &180,000 \\\text { Total Liabilities and Stockholders' Equity }&\$320,000\\\\\text { Income Statement }\\\text { Sales } & \$ 150,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross profit } & 84,000 \\\text { Operating expenses } & 30,000 \\\text { Net income }&\$54,000\\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share } & 50\end{array} What is the return on common stockholders' equity for Sampson?


Definitions:

Magnetic Resonance Imaging

A medical imaging technique used in radiology to form pictures of the anatomy and the physiological processes of the body, using strong magnetic fields and radio waves.

Eye Makeup

encompasses cosmetic products intended to enhance the appearance of the eyes, such as eyeshadow, eyeliner, and mascara.

Metallic Ingredients

Components composed of metal used in various products, including food, cosmetics, and pharmaceuticals.

MRI

Magnetic Resonance Imaging, a diagnostic technique that uses magnetic fields and radio waves to produce detailed images of the body’s internal structures.

Related Questions