Calculate the Return on Assets for a Hunting Outfitter Store

question 28

Multiple Choice

Calculate the return on assets for a hunting outfitter store that has total assets of $350,000,current assets of $74,000,total liabilities of $280,000,accounts receivable of $12,000,net sales of $64,000,and net profit of $23,000.

• A) 6.6 percent
• B) 8.2 percent
• C) 18.3 percent
• D) 25.0 percent
• E) 26.5 percent

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Definitions:

Downsizing

The reduction in the size or number of employees in a company as a strategy to improve its financial position.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers and competitors.

Distribution

The distribution of films through normal commercial agencies and theaters.

Mutually Beneficial

A situation or agreement in which all parties involved receive advantages or benefits from the arrangement or relationship.