The Following Information Pertains to Unique Company What Is the Return on Assets for This Company?
A)

question 57

Multiple Choice

The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 40,000 \\\text { Accounts receivable (net) } & 30,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000 \\\text { Total Assets } & \$ 300,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 60,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity-common } & 150,000 \\\text { Total Liabilities and Stockholders' Equity } & \$ 300,000\\\\\text { Income Statement }\\\text { Sales revenue } & \$ 90,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & 45,000 \\\text { Operating expenses } & 20,000 \\\text { Net income } & \$ 25,000 \\& \\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share on common stock } & 0,90 \\\text { Cash provided by onerations } & \$ 30,000\end{array}$ What is the return on assets for this company?

• A) 8.3%
• B) 10.0%
• C) 11.9%
• D) 16.7%

---

Definitions:

Causality

Describes a relationship where one event (the cause) directly affects the outcome of another event (the effect).

Normative Question

Involves value judgments about what ought to be and discusses what should be done based on subjective criteria.

Regressive Nature

Regressive nature typically refers to a situation or policy that disproportionately affects those with lower incomes more adversely than those with higher incomes.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of the product or service.