Information Use the following information to answer the next ten questions: MEGA
ID: 2692900 • Letter: I
Question
Information Use the following information to answer the next ten questions: MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31, 2006 ASSETS Cash $ 40,000 Accounts Receivable 60,000 Inventory 90,000 New Plant and Equipment 220,000 Total Assets $410,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable $ 60,000 Accrued Expenses 40,000 Long-Term debt 130,000 Common Stock 60,000 Paid-In capital 20,000 Retained earnings 100,000 Total Liabilities and Stockholders' Equity $410,000 MEGAFRAME COMPUTER COMPANY Income Statement For the Year Ended December 31, 2006 Sales (all on credit) $720,000 Cost of Goods Sold 500,000 Gross Profit 220,000 Sales and Administrative Expense 20,000 Depreciation 40,000 Operating Profit 160,000 Interest Expense 16,000 Profit before Taxes 144,000 Taxes (30%) 43,200 Net Income $100,800 Printable Version Question 32 (1 point) Using the DuPont method, return on assets (investment) for Megaframe Computer is approximately Question 32 options: 15% 25% 29% 35%Explanation / Answer
29%