The Following Information Pertains to Jasmin Corporation $31,20 \mathrm{xx}$

question 30

Multiple Choice

The following information pertains to Jasmin Corporation.Assume that all balance sheet amounts represent both average and ending figures. Jasmin Corporation
Partial Balance Sheet
December $31,20 \mathrm{xx}$
$\begin{array}{lr}\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 60,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity } & 150,000\\\text { Total liabilities and stockholders' equity }&\$300,000\end{array}$
Jasmin Corporation
Income Statement
For the Year Ended December 31, 20xx
$\begin{array}{lr}\text { Net sales } & \$ 80,000 \\\text { Cost of goods sold } & 45,000\\\text { Gross margin } & \$ 35,000 \\\text { Operating expenses } & 15,000\\\text { Income before income taxes } & \$ 20,000 \\\text { Income taxes expense } & 5,000\\\text { Net income }&\$15,000\end{array}$
Jasmin Corporation had 6,000 shares of common stock issued and outstanding.The market price of Jasmin common stock on December 31,20xx,was $20.Jasmin paid dividends of $0.90 per share during 20xx.
What is the return on assets for this corporation? Round your answer to one decimal place.

• A) 5.0 percent
• B) 10.0 percent
• C) 11.7 percent
• D) 26.7 percent

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Definitions:

Articles of Incorporation

Legal document filed with a governmental entity to legally establish a corporation.

Incorporator

The person or entity that files the incorporation papers with the state to legally form a corporation.

Domestic Corporation

A corporation in the state in which it is incorporated.

Revised Model Business Corporation Act

An updated framework intended to standardize and guide the law governing corporations in the United States.