FastForward Has Net Income of $18,955 and Assets at the Beginning

question 95

Multiple Choice

FastForward has net income of $18,955 and assets at the beginning of the year of $200,000.Its assets at the end of the year total $246,000.Compute its return on assets.

• A)7.7%
• B)8.5%
• C)9.5%
• D)11.8%
• E)13.0%

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Definitions:

Short-term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Financing Section

A segment of a business's cash flow statement that shows the net flows of cash used in funding the company, including debt, equity, and dividend payments.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, which affect the company's capital structure.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.