An Appliance Store Has Total Assets of $2,800,000,accounts Receivable of $900,000,accounts

question 87

Multiple Choice

An appliance store has total assets of $2,800,000,accounts receivable of $900,000,accounts payable of $700,000,inventory valued at $1,500,000,and total liabilities of $2,500,000.In 1999,its net sales were $2,100,000,and its net profit equaled $42,000. Calculate the store's return on assets.

• A)71.4 percent
• B)2.8 percent
• C)7.5 percent
• D)1.5 percent
• E)75 percent

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Majority Vote

A decision rule where the option that receives more than half of the votes wins, commonly used in elections and other decision-making processes.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, leading to a potential welfare loss.

Government Failure

A situation where government intervention in the economy causes inefficiencies or leads to a misallocation of resources.