The Following Information Pertains to the Unique Boutique Company What Is the Return on Assets for This Company?
A)6

question 43

Multiple Choice

The following information pertains to The Unique Boutique Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. $\begin{array}{lr}{\text { Assets }} & \\\text { Cash and short-term investments } & \$ 4,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000 \\\text { Total Assets } & \$ 295,000\\\\{\text { Liabilities and Stockholders' Equity }} \\\text { Current liabilities } & \$ 60,000 \\\text { Long-term liabilities } & 85,000 \\\text { Stockholders' equity-common } & 150,000 \\\text { Total Liabilities and Stockholders' Equity } & \$ 295,000 \\\\{\text { Income Statement }} & \$ 85,000 \\\text { Coles revenue of goods sold } & 45,000 \\\text { Gross margin } & 40,000 \\\text { Operating expenses } & 20,000 \\\text { Net income } & \$ 20,000\\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share on common stock } & 0.90 \\\text { Cash provided by operations } & \$ 30,000\\\end{array}$ What is the return on assets for this company?

• A)6.8%
• B)10.0%
• C)11.7%
• D)26.7%

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Definitions:

Diffusion of Innovation

The process by which a new idea, product, or behavior spreads through a population or social system.

Diffusion of Innovation

A theory that explains how, why, and at what rate new ideas and technology spread through cultures or social systems.

Informal Social Contacts

The interactions that occur between individuals in a casual, unstructured setting, outside of formal organizational or institutional contexts.

Diffusion of Innovation

The method in which a new idea is spread via specific pathways over a period among members of a societal system.