Walton, Inc Additional Information for the Year Ending December 31, 2019

question 100

Multiple Choice

Walton, Inc. provides the following data: $$\begin{array} { | l | r | r | } \hline & \underline { 2019 } & \underline { 2018 } \\\hline \text { Cash } & \$ 44,000 & \$ 25,000 \\\hline \text { Accounts Receivable, Net } & 101,000 & 62,000 \\\hline \text { Merchandise Inventory } & 78,000 & 50,000 \\\hline \text { Property, Plant, and Equipment, Net } & \underline { 182,000 } & \underline { 120,000 } \\\hline \text { Total Assets } & \$ 405,000 & \$ 257,000 \\\hline\end{array}$$ Additional information for the year ending December 31, 2019:
$$\begin{array} { | l | r | } \hline \text { Net Credit Sales } & \$ 550,000 \\\hline \text { Cost of Goods Sold } & 150,000 \\\hline \text { Interest Expense } & 24,000 \\\hline \text { Net Income } & 184,000 \\\hline\end{array}$$ Calculate the rate of return on total assets for 2019. (Round your answer to two decimal places.)

• A) 45.43%
• B) 62.84%
• C) 71.60%
• D) 51.36%

---

Definitions:

Process Costing System

A method of accounting that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process, to products by averaging them over units of output.

Downstream Costs

Costs incurred after the production phase, such as distribution and marketing expenses, as well as after-sales service costs.

Upstream Costs

Expenses incurred in the early stages of the production process, which can include exploration, development, and extraction in the oil and gas industry.

Inventory Valuation

The method used to calculate the cost of goods sold and ending inventory value for financial reporting.