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Simple Simon's Balance Sheet and Income Statement Accounts Follow What Is Simple Simon's Return on Common Stockholders' Equity Ratio

question 57

Multiple Choice

Simple Simon's balance sheet and income statement accounts follow:
$\begin{array}{lrrr}\text { At December } 31&2011&2010&2009\\\text { Assets }\\\text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \\\hline \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \\\hline \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \\\hline \text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \\\hline \text { Plant assets, net } & 291,143 & 268,126 & 244,108 \\\text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400\\\text { Liabilities and Equity }\\\text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \\\hline \text { Long-term notes payable secured by } & 98,372 & 103,748 & 107,769 \\\text { mortgages on plant assets } & 142,500 & 132,500 & 102,500 \\\hline \text { Common stock, } \$ 10 \text { par value } & 182,770 & 147,805 & 130,499\\\text { Total liabilities and equity }&\$533.932&\$460,286&\$391,400\end{array}$
$Simple Simon's balance sheet and income statement accounts follow: \begin{array}{lrrr}\text { At December } 31&2011&2010&2009\\ \text { Assets }\\ \text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \\ \hline \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \\ \hline \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \\ \hline \text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \\ \hline \text { Plant assets, net } & 291,143 & 268,126 & 244,108 \\ \text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400\\ \text { Liabilities and Equity }\\ \text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \\ \hline \text { Long-term notes payable secured by } & 98,372 & 103,748 & 107,769 \\ \text { mortgages on plant assets } & 142,500 & 132,500 & 102,500 \\ \hline \text { Common stock, } \$ 10 \text { par value } & 182,770 & 147,805 & 130,499\\ \text { Total liabilities and equity }&\$533.932&\$460,286&\$391,400 \end{array} What is Simple Simon's return on common stockholders' equity ratio for 2010? A) 27.5% B) 25.4% C) 12.6% D) 29.4% E) 19.5%$
What is Simple Simon's return on common stockholders' equity ratio for 2010?

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