Dowling Company's Net Income Last Year Was $40,000 and Its

question 124

Multiple Choice

Dowling Company's net income last year was $40,000 and its interest expense was $8,000.Total assets at the beginning of the year were $260,000 and total assets at the end of the year were $315,000.The company's income tax rate was 35 percent.The company's return on total assets for the year was closest to

• A)14.5%.
• B)15.7%.
• C)16.7%.
• D)7.9%.

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Definitions:

Platelets

Small blood cells involved in clotting, helping prevent bleeding by forming plugs in vessel injuries.

Percent Saturation

The ratio of the current amount of a substance to the total possible amount of that substance that could be held, absorbed, or dissolved by a solution.

Partial Pressure

The pressure exerted by a single type of gas in a mixture of gases.

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide to the lungs.