The Following Information Is Provided for Nguyen Company and Northwest

question 110

Multiple Choice

The following information is provided for Nguyen Company and Northwest Corporation. $\begin{array}{lll}\text { (in } \$ \text { millions) }&\text { Nguven Company }&\text { Northwest Corporation }\\\text { Net income } 2017 & \$ 165 & \$ 420 \\\text { Net sales } 2017 & 1,650 & 4,900 \\\text { Total assets } 12 / 31 / 15 & 1,000 & 2,400 \\\text { Total assets } 12 / 31 / 16 & 1,050 & 3,000 \\\text { Total assets } 12 / 31 / 17 & 1,150 & 4,000\end{array}$ If Nguyen and Northwest are in the same industry and the industry average for return on assets is equal to 30%, which of the following statements is true?

• A)Nguyen is more profitable than the average company in its industry.
• B)Northwest is more profitable than Nguyen.
• C)Both Nguyen and Northwest are more profitable than the average company in their industry.
• D)Nguyen is more profitable than Northwest.

---

Definitions:

Social Cultures

The shared customs, beliefs, values, norms, and practices that characterize a group of people or society, influencing behaviors and interactions within communities.

Obscene Material

Content that is offensive, lewd, or explicit in nature and lacks serious literary, artistic, political, or scientific value as determined by legal standards.

Industry Self-Regulation

A process where an industry regulates itself without external government intervention, often through adopting common standards or codes of conduct.

MPAA

The Motion Picture Association of America, an organization that rates films based on their content to provide viewership guidance.