Shown Below Are Selected Data from the Financial Statements of Supreme

question 9

Multiple Choice

Shown below are selected data from the financial statements of Supreme Co. Dollar amounts are in millions (except for the per share data) .
$$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Income statement data: } & \\\hline \text { Net sales } & \mathbf { \$ 1 , 2 3 0 } \\\hline \text { Cost of goods sold } & \mathbf { 5 2 0 } \\\hline \text { Operating expenses } & \mathbf { 4 4 0 } \\\hline \text { Net income } & \mathbf { \$ 3 9 0 } \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \mathbf { \$ 2 , 4 0 0 } \\\hline \text { Average total assets } & \mathbf { \$ 4 , 0 0 0 } \\\hline\end{array}\\\\\begin{array} { | l | r | } \hline \text { Income statement data: } & \\\hline \text { Sales } & \$ 1,230 \\\hline \text { Cost of goods sold } & 520 \\\hline \text { Operating expenses } & 440 \\\hline \text { Profit } & \$ 390 \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \$ 2,400 \\\hline \text { Average total assets } & \$ 4,000 \\\hline\end{array}\end{array}$$
Per share data (these amounts stated in actual dollars, not millions) :
Supreme reported earnings per share for the year of $4 and paid cash dividends of $1 per share. At year end, the Wall Street Journal listed Supreme's shares as trading at $88 per share.
-Refer to the above data. Supreme's return on assets was:

• A) 10%.
• B) 6.75%.
• C) 15%.
• D) Some other percentage.

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