The Following Statement of Financial Position and Statement of Comprehensive

question 254

Multiple Choice

The following statement of financial position and statement of comprehensive income should be used. Woodburn, Inc. has a profit margin of _____ %, a total asset turnover of _____, an equity multiplier of _____, and a return on equity of _____ %. (Use 2018 values.)

• A) 16.97%;.93;.60; 9.48%
• B) 16.97%; 1.07; 1.68; 30.52%
• C) 18.89%; 1.21; 1.73; 39.56%
• D) 18.89%; 1.07; 1.68; 33.94%
• E) 18.89%;.93;.60; 10.55%

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Definitions:

Current Liability

A company's debt or obligations that are due within one year.

Cumulative Preferred Stock

A type of preferred stock that accrues dividends if they are not paid in the year they are due, prioritizing these payment backlogs for future distribution.

Par Value

A nominal value assigned to shares of stock by the issuing company, which is the minimum price at which shares can be issued, often used for legal capital purposes.

Annual Dividend

The total dividend payment a company distributes to its shareholders in a fiscal year.