Refer to the income statement above. Luther's return on assets (ROA) for the year ending December 31, 2005 is closest to ________
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)
2006 2005
Total sales 610.1 573.3
Cost of sales -500.2 -389.6
Gross profit 109.9 183.7
Selling, general, and
administrative expenses -40.5 -39.8
Research and development -24.6 -22.7
Depreciation and amortization -3.6 -3.2
Operating income 41.2 118
Other income -- --
Earnings before interest and taxes (EBIT) 41.2 118
Interest income (expense) -25.1 -14.3
Pretax income 16.1 103.7
Taxes -5.5 -36.295
Net income 10.6 67.405
Price per share $16 $15
Sharing outstanding (millions) 10.2 8.0
Stock options outstanding (millions) 0.3 0.2
Stockholders' Equity 126.6 63.6
Total Liabilities and Stockholders' Equity 533.1 386.7
A) 17.43%
B) 34.86%
C) 13.94%
D) 1.99%
Answer: A
You might also like to view...
According to the text, ________ refers to the level of uncertainty about the characteristic being measured
A) precision B) reliability C) validity D) efficiency E) technical doubt
Research shows that the ________ organizations could be classified as high-performance organizations, the ________employees reported being satisfied with their jobs, and the ________ were the incidents of work-related accidents
A) more, less, lower B) less, more, higher C) more, more, lower D) less, less, higher