Selected financial data for Wilmington Corporation is presented below.


WILMINGTON CORPORATION
Balance Sheet
Dec. 31, Year 7 Dec. 31, Year 6
Current Assets
Cash and cash equivalents $548,001 $289,834
Marketable securities 166,106 187,064
Accounts receivable (net) 245,468 274,645
Inventories 403,268 371,578
Prepaid expenses 52,601 24,234
Other current assets 83,053 85,029
Total Current Assets 1,498,497 1,232,384
Property, plant and equipment 1,384,217 625,421
Long-term investment 568,003 425,000
Total Assets $3,450,717 $2,282,805
Current Liabilities
Short-term borrowings $306,376 $170,419
Current portion of long-term debt 155,000 168,000
Accounts payable 241,405 271,944
Accrued liabilities 259,975 158,634
Income taxes payable 92,848 169,965
Total Current Liabilities 1,055,604 938,962
Long-term debt 500,000 300,000
Deferred income taxes 204,266 249,284
Total Liabilities 1,759,870 1,488,246
Common stock $425,250 $125,000
Additional paid-in capital 356,450 344,335
Retained earnings 909,147 325,224
Total Stockholders' Equity 1,690,847 794,559
Total Liabilities and Stockholders' Equity $3,450,717 $2,282,805



Selected Income Statement Data for the year ending December 31, Year 7
Net sales $4,885,340
Cost of goods sold (2,960,267)
Selling expenses (884,685)
Operating income 1,040,388
Interest expense (55,240)
Earnings before income taxes 985,148
Income tax expense (401,225)
Net income $583,923



Selected Statement of Cash Flow Data for the year ending December 31, Year 7
Cash flows from operations $1,383,280
Capital expenditures $745,862

Required

What was Wilmington Corporation’s return on net operating assets (RNOA) in Year 7? Assume a statutory tax rate of 37%.

Select one:
a. 67.2%
b. 42.8%
c. 49.8%
d. 65.1%