The following information pertains to Auburn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
|
Assets
|
| Cash and short term investments |
$42,526 |
| Accounts receivable (net) |
$31,173 |
| Inventory |
$26,105 |
| Property, plant and equipment |
$299,929 |
| Total Assets |
$399,733 |
|
|
|
Liabilities and Stockholders’ Equity
|
| Current liabilities |
$67,659 |
| Long term liabilities |
$95,631 |
| Stockholders’ equity common |
$236,443 |
| Total Liabilities and stockholders’ equity |
$399,733 |
|
| Income Statement |
| Sales |
$82,274 |
| Cost of goods sold |
$37,023 |
| Gross margin |
$45,251 |
| Operating expenses |
$28,273 |
| Net income |
$ 16,978 |
|
| Number of shares of common stock |
5,979 |
| Market price of common stock |
$35 |
What is the rate earned on stockholders’ equity for this company?
Select the correct answer.
