Answer the Following Questions Using the Information Below:
the Echuca

question 1

Multiple Choice

Answer the following questions using the information below:
The Echuca Electrical Corporation reported the following information for its Coaxial Cables Division:
$$\begin{array} { l r } \text { Revenues } & \$ 1000000 \\\text { Operating costs } & 600000 \\\text { Taxable income } & 200000 \\\text { Operating assets } & 500000\end{array}$$ Profit is defined as operating profit.
-What is the Coaxial Cables Division's return on sales?

• A)0.20
• B)0.40
• C)0.50
• D)0.60

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Definitions:

Financing Activities

Comprises transactions that result in changes in the size and composition of the equity capital or borrowings of an entity. Examples include issuing bonds, repaying bank loans, and paying dividends.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Stock Dividend

A distribution of shares of stock to its stockholders.