Calculate the Return on Assets for a Gun Shop That

question 32

Multiple Choice

Calculate the return on assets for a gun shop that has total assets of $410,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and operating profit margin of $30,000.

• A) 18.3 percent
• B) 8.2 percent
• C) 7.3 percent
• D) 25.0 percent
• E) 26.5 percent

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Definitions:

Agricultural Product

Items derived from farming and agriculture, including crops, livestock, and other raw materials.

Bumper Crop

An exceptionally large harvest for a specific agricultural product.

Inelastic Demand

Product or resource demand for which the price elasticity of demand is less than 1, so that any given percentage change in price leads to a smaller percentage change in quantity demanded. As a result, quantity demanded is relatively insensitive to (inelastic with respect to) price.

Agricultural Demand

The total demand for agricultural products, influenced by factors such as population growth, income levels, and dietary trends.