question 27
Multiple Choice
Following are the financial statements for Starman Corporation for the year ended December 31,20xx.Assume that all balance sheet amounts represent both average and ending figures. Starman Corporation
Balance Sheet
December 31,20xx
Assets Cash Marketable securities Accounts receivable Inventory Long-term receivables Property, plant, and equipment Total assets Liabilities and Stockholders’ Equity Current liabilities Long-term liabilities Stockholders’ equity Total liabilities and stockholders’ equity $20,00030,00050,000100,00035,00065,000$300,000$100,00060,000140,000$300,000 Starman Corporation Income Statement For the Year Ended December 31,20×× Net sales Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes expense Net income $400,000240,000$160,00040,000$120,00030,000$90,000
What is the return on assets for this corporation? Round your answer to one decimal place.
Definitions:
Coinsurance Clause
A provision in insurance policies that requires the policyholder to bear a portion of the costs of a claim, with the insurance company paying the remainder.
Coinsurance Clause
A provision in an insurance policy that defines the percentage of the claim amount to be shared between the insurer and the insured.
Short-rate Refund
A return of a portion of the premium on an insurance policy that is canceled by the policyholder before its expiration, calculated at less than a pro-rata basis.
Premium Rate
The cost rate of insurance coverage per unit of coverage, reflecting the risk and administrative costs.