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Business, 29.05.2021 19:10 stormymoreland375

The balance sheets at the end of each of the first two years of a company's operations indicate the following: Year 2 Year 1 Total current assets $600,000 $580,000 Total investments 80,000 40,000 Total property, plant, and equipment 935,000 755,000 Total current liabilities 175,000 155,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in capital in excess of par—common stock 60,000 60,000 Retained earnings 330,000 210,000 If net income is $145,000 and interest expense is $30,000 for Year 2, what is the return on total assets for Year 2? a.26.9% b.19.3% c.10.8% d.11.7%

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