Calculate Company Y's Return on Assets Based on the Following

question 59

Multiple Choice

Calculate Company Y's return on assets based on the following information for the current year: (Round your final answer to two decimal places.)

$\begin{array} { | l | r | } \hline \text { Net income } & \$ 800,000 \\\hline \text { Assets at the beginning of the year } & \$ 100,000 \\\hline \text { Assets at the end of the year } & \$ 120,000 \\\hline \text { Net sales } & \$ 900,000 \\\hline\end{array}$

• A) 8.18
• B) 7.27
• C) 7.50
• D) 9.00

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Definitions:

Private Consumption

The total value of all goods and services consumed by individuals and households for personal use.

Pareto Efficient

A resource distribution condition where no reallocation can improve one person's situation without detrimentally affecting another person's situation.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use does not reduce its availability to others.

Private Good

A product or service that is consumable and excludable, meaning its use can be restricted to paying customers.