Cloverton Corporation Had Net Income of $30,000, Net Sales of $1,000,000

question 98

Multiple Choice

Cloverton Corporation had net income of $30,000, net sales of $1,000,000, and average total assets of $500,000. Its return on total assets is:

• A) 200%
• B) 1.5%
• C) 6%
• D) 3%
• E) 17%

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Definitions:

External Intercostals

Muscles located between the ribs, aiding in the mechanics of breathing by elevating the ribcage.

Intrapulmonary Pressure

The pressure within the alveoli of the lungs, vital for the process of inhalation and exhalation.

Expiratory Reserve Volume

The extra amount of air that can be forcibly exhaled after the completion of a normal, quiet expiration.

Vital Capacity

The maximum amount of air a person can expel from the lungs after a maximum inhalation.