Settles Corporation Has Provided the Following Financial Data

question 133

Multiple Choice

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on total assets for Year 2 is closest to:

• A)2.75%
• B)1.64%
• C)1.65%
• D)2.76%

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Definitions:

Net Income

The final amount a company keeps as profit after paying off all expenses and taxes from its revenues.

FOB Shipping Point

A term in shipping agreements where the buyer is responsible for the goods and their transportation cost as soon as they leave the seller's premises.

Ownership of Merchandise

The legal right or title to goods and inventory held by a business for sale.

Multiple-Step Income Statement

A detailed financial statement that separates operating revenues and expenses from non-operating ones, providing insights into a company's financial activities.