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-Using the DuPont Method,return on Assets (Investment)for Megaframe Computer Is

question 89

Multiple Choice

$\begin{array}{l} \text { LIABILITIES AND SHAREHOLDERS' EQUITY }\\ \begin{array} { l r } \text { Accounts payable } & \$ 60,000 \\ \text { Accrued expenses } & 40,000 \\ \text { Long-term debt } & 130,000 \\ \text { Common stock } & 80,000 \\ \text { Retained earnings } & \underline { 100,000 } \\ \text { Total Liabilities and Shareholders' Equity } & \underline { \$ 410,000 } \end{array} \end{array} -Using the DuPont method,return on assets (investment) for Megaframe Computer is approximately: A) 15%. B) 25%. C) 29%. D) 20%.$
$\begin{array}{l}\text { LIABILITIES AND SHAREHOLDERS' EQUITY }\\\begin{array} { l r } \text { Accounts payable } & \$ 60,000 \\\text { Accrued expenses } & 40,000 \\\text { Long-term debt } & 130,000 \\\text { Common stock } & 80,000 \\\text { Retained earnings } & \underline { 100,000 } \\\text { Total Liabilities and Shareholders' Equity } & \underline { \$ 410,000 }\end{array}\end{array}$
$\begin{array}{l} \text { LIABILITIES AND SHAREHOLDERS' EQUITY }\\ \begin{array} { l r } \text { Accounts payable } & \$ 60,000 \\ \text { Accrued expenses } & 40,000 \\ \text { Long-term debt } & 130,000 \\ \text { Common stock } & 80,000 \\ \text { Retained earnings } & \underline { 100,000 } \\ \text { Total Liabilities and Shareholders' Equity } & \underline { \$ 410,000 } \end{array} \end{array} -Using the DuPont method,return on assets (investment) for Megaframe Computer is approximately: A) 15%. B) 25%. C) 29%. D) 20%.$
-Using the DuPont method,return on assets (investment) for Megaframe Computer is approximately:

Definitions:

Credit Sales Transactions

Transactions where goods or services are sold to a customer with an agreement that payment will be made at a later date.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real-time, continuously updating inventory balances.

Purchase Returns

Goods returned to a supplier from a buyer due to issues like defects or dissatisfaction, often leading to a refund or credit.

Periodic System

An inventory accounting system where updates to inventory levels and cost of goods sold are made at the end of an accounting period.