-What Is the Rate Earned on Total Assets for Diane

question 156

Multiple Choice

$\begin{array}{c}\text { Assets }\\\begin{array}{lr}\text { Cash and short-term investments } & \$ 30,000 \\\text { Accounts receivable net } & 20,000 \\\text { Inventory } & 15,000 \\\text { Property, plant, and equipment } & \underline {185,000} \\ \text { Total assets } & \underline {\$ 250,000} \\\end{array}\end{array}$


$\begin{array}{c}\text { Liabilities and Stockholders' Equity }\\\begin{array}{lr}\text { Current liablities } & \$ 45,000 \\\text { Long-term liabilities } & 70,000 \\\text { Stockholders' equity \_Common } & \underline {135,000} \\\text { Total liabilities and stockholders' equity } & \underline {\$ 250,000} \\\end{array}\end{array}$

$\begin{array}{c}\text { Income Statement}\\\begin{array}{lll}\text { Sales } \\\text { Cost of goods sold } \\\text { Gross margin } \\\text { Operating expense: } \\\text { Interest expense } \\\text { Net income }\end{array}\begin{array}{lll}\$ 85,000 \\45,000 \\\hline \$ 40,000 \\15,000 \\5,000 \\\hline \$ 20,000 \\\hline\end{array}\end{array}$
$\begin{array}{l}\begin{array}{lll} \text { Number of shares of common stock outstanding}\\ \text { Market price of common stock}\\ \text { Total dividends paid}\\ \text { Cash provided by operations}\\\end{array}\begin{array}{lll}6,000 \\\$ 20 \\\$ 9,000 \\\$ 30,000\end{array}\end{array}$

-What is the rate earned on total assets for Diane Company?

• A)10.0%
• B)8.0%
• C)0.10%
• D)1.0%

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Definitions:

Friedman Test

This test, which is non-parametric, is employed to spot treatment differences through numerous testing rounds.

Randomized Block Design

An experimental design in which subjects are divided into blocks based on certain characteristics before being randomly assigned to different treatments, reducing the influence of confounding variables.

Analysis Of Variance

A statistical method used to compare the means of three or more samples to determine if at least one of the sample means is significantly different from the others.

Friedman Test

This non-parametric approach is utilized to identify distinctions in treatments throughout multiple testing sessions.