Given the Following Financial Data: Net Income/sales = 6%; Sales/total

question 139

Multiple Choice

Given the following financial data: net income/sales = 6%; sales/total assets = 3.5; debt/total assets = 30%. The return on total assets is:

• A) 15%
• B) 21%
• C) 30%
• D) 36%

---

Definitions:

Degrees of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic, crucial for the assessment of the statistic's validity.

Goodness-of-fit Test

A statistical test used to determine how well observed sample data fits the expected distribution.

Poisson Distribution

A discrete probability distribution expressing the probability of a given number of events occurring in a fixed interval of time or space.

Null Hypothesis

A statement of no effect or no difference, used as a default hypothesis that there is no relationship between two measured phenomena.