A fiRm Has Sales of $500, Total Assets of $300

question 376

Multiple Choice

A firm has sales of $500, total assets of $300, and a debt/equity ratio of 1. If its return on equity is 15%, what is its net income?

• A) $7.50
• B) $15.00
• C) $22.50
• D) $32.50
• E) $50.00

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Definitions:

Lactic Acid

An organic compound produced in muscles during intense activity and associated with muscle fatigue.

Cardiorespiratory Functioning

The ability of the heart and lungs to supply oxygen-rich blood to the muscles during sustained physical activity.

ATP-CP System

A short-term energy system that provides immediate energy through the breakdown of adenosine triphosphate (ATP) and creatine phosphate (CP) during high-intensity, short-duration exercises.

Hitting The Wall

A colloquial term for the point in prolonged, intense exercise when the body depletes its energy reserves and fatigue sets in.