Zulu Corporation Had Total Assets of $475 Million

question 49

Multiple Choice

Zulu Corporation had total assets of $475 million.It had sales of $300; cost of goods sold of $225 million, and operating expenses of $35 million.Tax rate is 40%.Calculate the company's Return of Assets.

• A)4.04%
• B)5.05%
• C)6.06%
• D)7.07%

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Definitions:

Cash Receipts Journal

An accounting journal specifically used to record all receipts of cash, detailing the source of each receipt for a given period.

Record Payment

The process of documenting the payment of a bill or an obligation in the business’s financial records.

Revenue Journal

The revenue journal is a ledger book or digital record in accounting that tracks all incoming earnings or revenue transactions generated by business operations.

Cash Receipts Journal

A specific accounting journal used to record all receipts of cash during a particular period.