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 Increase

An upward movement in a company's cash balance, indicating improved liquidity or additional inflow of money.

Operational Cycle

The period between the acquisition of inventory by a company and the collection of payments for the goods or services sold.

Accounts Payable Period

The time between receipt of inventory and payment for it.

Cash Cycle

The period between the outflow of cash for the purchase of raw materials and the inflow of cash from the sale of goods or services, reflecting the time it takes for a business to convert its investment in inventory back into cash.