Luther Corporation Consolidated Income Statement

question 99

Multiple Choice

Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)

Refer to the income statement above. Luther's return on assets (ROA) for the year ending December 31, 2005 is closest to ________.

• A) 24.32%
• B) 48.64%
• C) 19.46%
• D) 1.99%

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Definitions:

Gross Margin

Gross margin is the difference between revenue and cost of goods sold (COGS) expressed as a percentage of revenue, indicating the efficiency with which a company produces goods.

Operating Expenses

Expenses incurred through normal business operations, such as rent, utilities, and salaries, but not including cost of goods sold.

Statement of Stockholders' Equity

A financial document showing changes in the value of a company’s equity over a specific period, including shares issued, dividends paid, and earnings retained.