Balance Sheet for Year-Ended Dec 31 ($000's)

question 22

Multiple Choice

Balance Sheet for year-ended Dec 31 ($000's)

-Blockbuster Inc.
Income Statement for year-ended Dec 31 ($000's)

Referring to the Blockbuster financial statements,what is the change in ROA from Year 1 to Year 2?

• A) -8.40%
• B) -7.54%
• C) -2.18%
• D) 8.40%
• E) 23.72%

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of supervisors, not directly tied to a specific product.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

Conversion Costs

The sum of labor and overhead expenses incurred in the process of converting raw materials into finished goods.

Work In Process

Goods and materials that are partially completed in the manufacturing process, representing an inventory category on the balance sheet.