Refer to the Following Selected Financial Information from Gomez Electronics

question 15

Multiple Choice

Refer to the following selected financial information from Gomez Electronics. Compute the company's return on total assets for Year 2. $\begin{array}{lrr}& \text { Year 2 } & \text { Year 1 } \\\text { Net sales } & \$ 478,500 & \$ 426,250 \\\text { Cost of goods sold } & 276,300 & 250,120 \\\text { Interest expense } & 9,700 & 10,700 \\\text { Net income before tax } & 67,250 & 52,680 \\\text { Net income after tax } & 46,050 & 39,900 \\\text { Total assets } & 317,100 & 288,000 \\\text { Total liabilities } & 181,400 & 167,300 \\\text { Total equity } & 135,700 & 120,700\end{array}$

• A) 9.6%.
• B) 15.2%.
• C) 2.6%.
• D) 22.2%.
• E) 14.5%.

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