The Wendell Corporation reported the following income statement and balance sheet amounts and additional information...
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The Wendell Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of prior End of current year year Net sales revenue (all credit) $1,220,000 Cost of goods sold $725,000 Gross profit $495,000 Selling/general expenses $280,000 Interest expense $46,000 Net Income $169,000 Current assets Long-term assets Total assets Current liabilities Long-term liabilities Common stockholders' equity $113,000 $512,000 $625,000 $57,000 $279,000 $289,000 $82,000 $440,000 $522,000 $52,000 $245,000 $225,000 Total liabilities and stockholders' equity $625,000 $522,000 Inventory and prepaid expenses account for $30,000 of the current year's current assets. Average inventory for the current year is $36,250. Average net accounts receivable for the current year is $45,000. There are 35,000 shares of common stock outstanding. Total dividends paid during the current year were $17,000. The market price per share of common stock is $20. What is the rate of return on common stockholder's equity for the current year? A. 65.76% B. 75.11% C. 152.07% D. 60.57%
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