The 2017 Balance for Mason Electronics Reported the Following Items

question 66

Multiple Choice

The 2017 balance for Mason Electronics reported the following items - with 2016 figures given for comparison: $\begin{array}{|l|r|c|}\hline&\text { Mason Electronics } & \text { Mason Electronics } \\&\text { Balance Sheet } & \text { Balance Sheet } \\&\text { As of December } 31,2017 & \text { As of December } 31,2016\\\hline \text { Total Assets } & \underline{\$ 571,000} & \underline{\$ 494,000} \\\hline & & \\\hline \text { Total Liabilities } & 330,000 & 284,000 \\\hline \begin{array}{l}\text { Total Stockholders' } \\\text { Equity (all common) }\end{array} & \underline{241,000} & \underline{210,000} \\\hline \begin{array}{l}\text { Total Liabilities and } \\\text { Stockholders' Equity }\end{array} & \underline{\$ 571,000} & \underline{\$494,000} \\\hline\end{array}$
Net income for 2016 was $25,000.Compute the rate of return on common stockholders' equity for 2016.(Round to two decimal places.Show your computations. )

• A)4.38%
• B)10.37%
• C)11.09%
• D)4.69%

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Definitions:

Kinsey

Refers to Alfred Kinsey, an American biologist and sexologist who founded the Institute for Sex Research at Indiana University and is known for his research on human sexuality.

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