Price Printing Co

question 68

Multiple Choice

Price Printing Co. had sales of $10 million, operating income of $3 million, after-tax income of $1 million, assets of $8 million, stockholders' equity of $5 million, and a total debt of $4 million. What is Price Printing Company's return on assets?

• A)37.5%
• B)12.5%
• C)30.0%
• D)25.0%
• E)20.0%

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Definitions:

Equilibrium Price

The cost at which the amount of products available for sale matches the amount of products consumers want to buy.

Firms Operating

Businesses engaged in any activity that seeks profits by providing goods or services to customers.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good supplied by producers, under the assumption of ceteris paribus (all other factors being equal).

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.