The Following Information Pertains to Jasmin Corporation Jasmin Corporation Had 6,000 Shares of Common Stock Issued and Balance

question 35

Multiple Choice

The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures.
$\begin{array}{|l|l|}\hline \text { Jasmin Corporation } \\\hline \text { Partial Balance Sheet } \\\hline \text { December 31, 20xx } \\\hline \text { Liabilities and Stockholders' Equity } \\\hline \text { Current liabilities } & \$ 60,000 \\\hline \text { Long-term liabilities } & 90,000 \\\hline \text { Stockholders' equity } & 150,000 \\\hline \text { Total liabilities and stockholders' equity } & \$ 300,000 \\\hline\end{array}$

$\begin{array}{|l|r|}\hline \text { Jasmin Corporation } \\\hline \text { Income Statement } \\\hline \text { For the Year Ended December } 31,20 \mathrm{xx} \\\hline \text { Net sales } & \$ 80,000 \\\hline \text { Cost of goods sold } & 45,000 \\\hline \text { Gross margin } & \$ 35,000 \\\hline \text { Operating expenses } & 15,000 \\\hline \text { Income before income taxes } & \$ 20,000 \\\hline \text { Income taxes expense } & 5.000 \\\hline \text { Net income } & \$ 15,000 \\\hline\end{array}$ 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.
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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:

Borrowing Money

The act of obtaining funds from lenders under the agreement to repay with interest within a specified timeframe.

Increases Equity

An action or event that raises the value of an owner's shares in a company or property.

Decreases Risk

Involves actions or strategies aimed at reducing the potential for loss or harm in various contexts, such as financial investments, business operations, or personal decisions.

Reduces Liquidity

Refers to any action or situation that decreases the ease with which assets can be converted into cash without significant loss in value.