Supreme return on assets was Required information The follow

Supreme return on assets was.

Required information [The following information applies to the questions displayed below Shown below are selected data from the financial statements of Supreme Co. Dollar amounts are in the per share data) millions (except Income statement data: Net sales Cost:of goods sold Operating expenses Net income $1,11e S498 $ 410 $ 330 Balance sheet data: Averege total equity Average totel assets $1,800 $3,400 Supreme reported earnings per share for the year of $5 and paid cash dividends of $2 per share. At year-end, the W Street Journal listed Supreme\'s capital stock as trading at $82 per share What was Supreme\'s operating income in millions)?

Solution

Answer:

1

Supreme\'s Operating income

Sales

1110

Less:

Cost of goods sold

490

Operating expanses

410

Operating Income

210

Supreme\'s Operating income =$210

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2

Supreme\'s Return on assets

=Operating income / average total assets

=210 / 3400

=6.18%

Supreme\'s Return on assets=6.18%

Sales	1110
Less:
Cost of goods sold	490
Operating expanses	410
Operating Income	210