Determine the Dollar Amount of Revenues for a Venture with the Following

question 68

Multiple Choice

Determine the dollar amount of revenues for a venture with the following financial information: net profit = $60,000; assets turnover = 1.5 times; and return on assets 30%.

• A) $300,000
• B) $500,000
• C) $800,000
• D) $1,000,000
• E) $1,200,000

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Definitions:

Nominal Interest Rate

The stated rate of interest without adjustment for inflation or other factors.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing or the real yield on an investment.

Inflation Rate

The percentage increase in the general level of prices for goods and services in a country over a period, typically measured annually.

Industry Life Cycle

A sequence of stages from introduction, growth, and maturity to decline that industries typically go through, affecting companies’ strategies and performances.