Refer to the Following Selected Financial Information from Shakley's Incorporated

question 117

Multiple Choice

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2. $$\begin{array} { | l | r | r | } \hline & { \text { Year 2 } } & \text { Year 1 } \\\hline \text { Net sales } & \$ 478,500 & \$ 426,250 \\\hline \text { Cost of goods sold } & 276,300 & 250,120 \\\hline \text { Interest expense } & 9,700 & 10,700 \\\hline \text { Net income before tax } & 67,250 & 52,680 \\\hline \text { Net income after tax } & 46,050 & 39,900 \\\hline \text { Total assets } & 317,100 & 288,000 \\\hline \text { Total liabilities } & 181,400 & 167,300 \\\hline \text { Total equity } & 135,700 & 120,700 \\\hline\end{array}$$

• A) 2.6%.
• B) 15.2%.
• C) 22.2%.
• D) 9.6%.
• E) 14.5%.

---

Definitions:

Basal Ganglia

A group of nuclei in the brain involved in movement regulation, emotion, and cognitive processing.

Medial Temporal Cortex

A region of the brain within the medial temporal lobe, involved in memory formation, organization, and retrieval.

Long-term Potentiation (LTP)

A long-lasting increase in signal transmission between two neurons that results from stimulating them synchronously, believed to be a cellular mechanism underlying learning and memory.

Synaptic Effectiveness

The strength or efficacy of synaptic transmission, influencing how effectively a neural signal is passed from one neuron to another.