(Solution) - In 2011 Osasco Corporation had net sales of R 600 000 and -(2025 Original AI-Free Solution)

Paper Details

In 2011, Osasco Corporation had net sales of R$600,000 and cost or goods sold of R$360,000. Operating expenses were R$153,000, and interest expense was R$7,500. The corporation?s tax rate is 30%. The corporation declared preference dividends of R$15,000 in 2011, and its average ordinary shareholders? equity during the year was R$200,000.

Instructions
(a) Prepare an income statement for Osasco Corporation.
(b) Compute Osasco Corporation?s return on ordinary shareholders? equity for 2011.