Use the Following to Answer Questions
Little Deer Industries

question 45

Multiple Choice

Use the following to answer questions
Little Deer Industries gathered the following year-end data (in thousands) for 2010 and 2009:
$$\begin{array} { l l l } \text { Curent Assets } & \frac { 2010 } { 2009 } & \frac { 2025 } { \$ 465 } \\\text { Long-Tenn Arsets } & 885 & 585 \\\text { Curtert Liabilities } & 385 & 385 \\\text { Long-Term Liabilities } & 575 & 575 \\\text { Owners' Equity } & 575 & 265 \\\text { Net Sales } & 975 & 775 \\\text { Gross Margir } & 485 & 365 \\\text { Net Income } & 255 & 100\end{array}$$
-The return on owners' equity for 2010 was:

• A)35.0%
• B)58.8%
• C)60.7%
• D)65.3%

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Definitions:

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Lower of Cost

An accounting principle that values inventory at the lower of its historical cost or the current market value.

Net Realizable Value

The estimated selling price in the ordinary course of business, less any costs of completion, disposal, and transportation.

Cost of Goods Sold

The immediate expenses related to manufacturing the products a company sells, which consist of materials and labor.