The Records of Sage Company Showed the Following *10,000 Shares Outstanding; Current Market Price, $30 **Including Income Tax;

question 21

Essay

The records of Sage Company showed the following: $$\begin{array} { | l | r | } \hline \text { Assets } & \$ 230,000 \\\hline \text { Liabilities } & 130,000 \\\hline \text { Shareholders' equity* } & 100,000 \\\hline \text { Revenues } & \$ 100,000 \\\hline \text { Expenses } ^ { * * } & ( 81,000 ) \\\hline \text { Interest expense } & ( 2,000 ) \\\hline \text { Profit } & \$ 17,000 \\\hline\end{array}$$ *10,000 shares outstanding; current market price, $30 **Including income tax; income tax rate, 30% $\begin{array}{|l|l|}\hline(1) & \text { The return on assets is } \underline{\quad\quad}\%\\\hline(2) & \text { The return on equity is } \underline{\quad\quad}\% . \\\hline(3) & \text { The financial leverage factor is } \underline{\quad\quad}\%\\\hline(4) & \text { Is the financial leverage positive or negative? } \underline{\quad\quad}\\\hline\end{array}$

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Definitions:

Peripheral IV Access

The insertion of an intravenous line into a peripheral vein, typically in the arm or hand, to administer fluids, medications, or nutrients.

Sterile Gloves

Sterile gloves utilized in medical procedures to inhibit contamination, ensuring they are devoid of any living organisms.

IV Catheter

A tube inserted into a vein, usually for the administration of fluids, medications, or to draw blood.

Aldosterone

Mineralocorticoid steroid hormone produced by the adrenal cortex with action in therenal tubule to regulate sodium and potassium balance in the blood.