Exhibit 4.1 the Balance Sheet and Income Statement Shown Below Are for Are

question 77

Multiple Choice

Exhibit 4.1
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

-Refer to Exhibit 4.1.What is the firm's return on invested capital?

• A)4.25%
• B)5.67%
• C)7.72%
• D)9.33%
• E)11.87%

---

Definitions:

Sound Cinema Technology

The technology enabling the synchronization of motion picture with sound, revolutionizing the film industry in the late 1920s.

Phonograph

An early sound-reproducing machine that uses cylinders or discs to record and playback sound, invented in the late 19th century.

Vitaphone

An early sound film system created by Warner Bros. that synchronized a film's soundtrack stored on phonograph records.

Licensing Agreements

Contracts in which the holder of intellectual property grants permission to another party to use the property under specified conditions.