Company X Has Net Sales Revenue of $1,250,000,cost of Goods

question 56

Multiple Choice

Company X has net sales revenue of $1,250,000,cost of goods sold of $760,000,and all other expenses of $290,000.The beginning balance of shareholders' equity is $400,000 and the beginning balance of fixed assets is $361,000.The ending balance of shareholders' equity is $600,000 and the ending balance of fixed assets is $389,000.What is the Return On Equity of the company?

• A)0.53
• B)2.50
• C)3.33
• D)0.40

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Definitions:

Primary Operations

The main activities a company engages in that directly relate to its core business or purpose.

Gains on Sales of Investments

The profit realized from the sale of investments such as stocks, bonds, or real estate.

Income Statement

A financial statement that shows a company's revenues and expenses over a period of time, reflecting the company's financial performance.

Securities & Exchange Commission

A U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges, and other electronic securities markets.