Selected Current Year Company Information Follows The Return on Total Assets Is:
A)2

question 110

Multiple Choice

Selected current year company information follows:
$\begin{array}{l|r}\text { Net income } & \$ 15,953 \\\hline \text { Net sales } & 712,855 \\\hline \text { Total liabilities, beginning-year } & 83,932 \\\hline \text { Total liabilities, end-of-year } & 103,201 \\\hline \text { Total stockholders' equity, beginning-year } & 198,935 \\\hline \text { Total stockholders' equity, end-of-year } & 121,851\\\end{array}$
The return on total assets is:

• A)2.81%
• B)3.64%
• C)6.28%
• D)4.67%
• E)2.24%

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Definitions:

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving periodic interest payments and the return of principal at maturity.

Held-to-maturity Securities

These are financial assets that a company has the intent and ability to hold until they mature.

Amortized Cost

The expense of an intangible asset over its useful life.