Refer to the Following Selected Financial Information from Shakley's Incorporated

question 53

Multiple Choice

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2. $\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Net sales } & \$ 478,500 & \$ 426,250 \\\hline \text { Cost of goods sold } & 276,300 & 250,120 \\\hline \text { Interest expense } & 9,700 & 10,700 \\\hline \text { Net income before tax } & 67,250 & 52,680 \\\hline \text { Net income after tax } & 46,050 & 39,900 \\\hline \text { Total assets } & 317,100 & 288,000 \\\hline \text { Total liabilities } & 181,400 & 167,300 \\\hline \text { Total equity } & 135,700 & 120,700 \\\hline\end{array}$

• A)2.6%.
• B)15.2%.
• C)22.2%.
• D)9.6%.
• E)14.5%.

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Definitions:

College Binge Drinking

The consumption of an excessive amount of alcohol in a short period, often associated with college or university students.

Secondhand Effects

Negative consequences experienced by individuals as a result of others' behaviors, such as being harmed by a drunk driver or living with someone who smokes.

Binge Drinking

The consumption of an excessive amount of alcohol in a short period of time, with the intention of becoming intoxicated.

Party-centered Lifestyle

A way of life characterized by frequent participation in social gatherings or parties, often prioritizing social life above other responsibilities.