The Total Assets of the Philbin Company on January 1

question 107

Multiple Choice

The total assets of the Philbin Company on January 1 were $2.3 million and on December 31 were $2.5 million.Net income for the year was $188,000.Dividends for the year were $75,000,interest expense was $70,000,and the tax rate was 30%.The return on total assets for the year was closest to which of the following?

• A) 6.8%.
• B) 9.5%.
• C) 9.9%.
• D) 10.8%.

Understand the concepts of budget slack and goal conflict in budget preparation.

Calculate staffing requirements and budgeted expenses for sales clerks based on projected sales.

Assess how budgeting aids in planning, directing, and controlling an organization's financial health.

Comprehend the process of preparing a master budget and its components.