A Company Had Net Income of $2,785,000,net Sales of $250,000,000,average

question 175

Multiple Choice

A company had net income of $2,785,000,net sales of $250,000,000,average total assets of $6,000,000,and equity investments of $40,000.Its return on total assets equals:

• A)$3,215,000
• B)41.67%
• C)21.54%
• D)69.63%
• E)46.42%

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Definitions:

Weighted-Average

A method used to calculate an average whereby different values have different levels of importance or "weights".

Cost of Goods Sold

The immediate expenses related to the manufacture of products sold by a business, encompassing both materials and workforce.

Perpetual System

An inventory management method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

FIFO Perpetual

An inventory management system where the first items purchased (First-In) are the first to be sold or used (First-Out), continuously updated.