Find the Ratio of Net Income After Taxes to Average

question 40

Multiple Choice

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent.
-Owner's equity at beginning of year: $531,000. Owner's equity at end of year: $852,000. Net income after taxes: $10,500

• A)2.1%
• B)1.5%
• C)2.0%
• D)1.2%

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Definitions:

Discrete Random Variable

A variable that can take on a finite or countably infinite number of values, representing outcomes of a random process.

Variance

The measure of dispersion that represents the average of the squared differences from the mean of a data set.

Oil Firm

A company involved in the exploration, production, refinement, or sale of oil and oil products, often playing a significant role in the energy sector.

Striking Oil

Discovering a significant and valuable amount of oil during drilling activities.