Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)
2006 2005
Total sales 610.1 564.9
Cost of sales -500.2 -360.5
Gross profit 109.9 204.4
Selling, general, and
administrative expenses -40.5 -40.5
Research and development -24.6 -23.5
Depreciation and amortization -3.6 -3.4
Operating income 41.2 137
Other income -- --
Earnings before interest and taxes (EBIT) 41.2 137
Interest income (expense) -25.1 -14.3
Pretax income 16.1 122.7
Taxes -5.5 -42.945
Net income 10.6 79.755
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
Refer to the income statement above. Luther's return on assets (ROA) for the year ending December 31, 2005
is closest to ________.
A) 24.32%
B) 48.64%
C) 19.46 %
D) 1.99 %