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

question 67

Multiple Choice

The following information pertains to Cheng Company.Assume that all statement of financial position amounts represent both average and ending balance figures.Assume that all sales were on credit.All amounts are in thousands except per share items. $\begin{array}{lr}\text { Sales } & ¥ 90,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & 45,000 \\\text { Operating expenses } & \quad 25,000 \\\quad \text { Net income } & ¥ 20,000\\\\\text { Number of ordinary shares } & 5,000 \\\text { Market price of ordinary shares } & \$ 22 \\\text { Dividends per share } & 1.00\end{array}$

What is the return on assets for Cheng?

• A) \( 4.8 \% \)
• B) \( 9.7 \% \)
• C) \( 6.5 \% \)
• D) \( 12.9 \% \)

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms to increase transparency and protect investors from fraudulent financial reporting.

Governmental Supervision

The act of monitoring, regulating, and overseeing activities by state or government agencies to ensure compliance with laws and regulations.

Environmental Factors

External elements like political, economic, social, technological, environmental, and legal conditions that affect an organization's operations.

Ethical Standards

The principles and values that determine appropriate behavior and actions within an organization or profession.