Top of Form According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 50 new workstations at a cost of $250,000 each and also spends $5 million for an addition to its assembly plant to accommodate the new workstations, then its annual depreciation costs will rise by | | | $1,750,000 | | | $700,000 | | | $350,000 | | | $17,500,000 | | | None of these-------------------------------------------------
Top of Form Income Statement Data | Quarter 1(in 000s) | Sales Revenues | $50,000 | Operating Profit | 14,400 | Net Income | $ 9,555 | | | Balance Sheet Data | | Total Current …show more content…
| | | $9,000,000 and $10.00. | | | $6,000,000 and $20.00. | | | $9,600,000 and $12.00. | | | $3,000,000 and $10.00. | Income Statement Data | Full Year(in 000s) | Sales Revenues | $200,000 | Operating Profit | 57,600 | Net Income | $38,120 | | | Balance Sheet Data | | Total Current Assets | $80,000 | Total Current Liabilities | 46,000 | Total Assets | 216,000 | L-T Debt (draw against credit line) | 50,000 | Total Equity | 120,000 | | | Other Financial Data | | Depreciation | $16,000 | Dividend payments | $9,000 | | |
Based on the above figures, the company’s return on equity (defined as net income divided by total equity investment of stockholders, as per the Help screen for the Comparative Financial Performance page of the GSR) is | | | 38.2% | | | 27.5%. | | |