The Following Financial Statement Information Is Available for Henn Corporation

question 170

Multiple Choice

The following financial statement information is available for Henn Corporation: $\begin{array}{lrr}&2013&2012\\\text { Stockholders' equity - common } & \$ 330,000 & \$ 270,000 \\\text { Net sales } & 784,000 & 697,000 \\\text { Cost of goods sold } & 406,000 & 377,000 \\\text { Net income } & 112,000 & 80,000 \\\text { Inc tax expense } & 48,000 & 29,000 \\\text { Interest expense } & 14,000 & 14,000\\\text { Dividends paid to preferred }\\\text { stockholders }& 22,000 & 20,000 \\\text { Dividends paid to common } \\\text { stockholders }& 15,000 & 10,000\end{array}$ The return on common stockholders' equity for 2013 is

• A)25.0%.
• B)37.3%.
• C)27.3%.
• D)30.0%.

---

Definitions:

Real Property

Real property refers to land and anything permanently attached to the land, such as buildings and structures.

Law of Sales

Governs the sale of goods, defining the rights, duties, and liabilities of buyers and sellers in transactions involving personal property.

Price of Goods

the monetary value assigned to physical products that are available for sale in the market.

Tender of Delivery

The act of presenting goods for acceptance to the buyer and notifying them that the goods are available as per the contract.