Peartree Company Provides the Following Data Additional Information:
• Net Sales (All on Account): $240,000
•

question 2

Multiple Choice

Peartree Company provides the following data:
$$\begin{array} { | l | r | r | } \hline \text { BALANCE SHEET } & \text { Dec 31,2014 } & \text { Dec 31,2013 } \\\hline \text { Cash } & \$ 21,000 & \$ 18,000 \\\hline \text { Accounts receivable, net } & 31,000 & 35,000 \\\hline \text { Inventory } & 53,000 & 25,000 \\\hline \text { PP\&E, net } & 120,000 & 90,000 \\\hline \text { Total assets } & \$ 225,000 & \$ 168,000 \\\hline\end{array}$$
Additional information:
• Net sales (all on account) : $240,000
• Cost of goods sold: $110,000
• Interest expense: $1,000
• Net income: $49,000
How much is the return on total assets for 2014?

• A) 7.27
• B) 1.22
• C) 0.25
• D) 7.07

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Definitions:

Metalloids

Elements with properties that are intermediate between those of metals and solid nonmetals.

Atomic Symbols

Abbreviations assigned to elements based on their names, used for representing elements in chemical formulas and equations.

Chromium

A lustrous, hard, and brittle metallic element used in alloys to increase strength and corrosion resistance.

Krypton

A chemical element with the symbol Kr and atomic number 36, a noble gas used in lighting and photography.