Selected financial data from the June 30 year-end statements of Safford Company are given below:...
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Accounting
Selected financial data from the June 30 year-end statements of Safford Company are given below:
| Total assets | $ 5,300,000 |
|---|---|
| Long-term debt (12% interest rate) | $ 600,000 |
| Total stockholders equity | $ 2,300,000 |
| Interest paid on long-term debt | $ 72,000 |
| Net income | $ 370,000 |
Total assets at the beginning of the year were $5,100,000; total stockholders equity was $2,100,000. The companys tax rate is 40%.
Required:
1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
THE ANSWER IS NOT 7.1 OR 7.12
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