The Following Information Pertains to Arnez Company Invested Capital Is Defined as Total Assets Minus Current Liabilities

question 33

Multiple Choice

The following information pertains to Arnez Company:
$\begin{array}{ll}\text { Total assets } & \$ 150,000 \\\text { Net operating profit after taxes } & \$ 12,000 \\\text { Total current liabilities } & \$ 110,000 \\\text { Total expenses } & \$ 160,000 \\\text { Total liabilities } & \$ 115,000 \\\text { Total revenues } & \$ 180,000\end{array}$
Invested capital is defined as total assets minus current liabilities.The after-tax cost of capital is 10%.What is the economic profit?

• A) $8,000
• B) $20,000
• C) $40,000
• D) $50,000

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Definitions:

Task Significance

The degree to which a job has a substantial impact on the lives or work of other people either within or outside the organization.

Job Enlargement

A human resource strategy where additional tasks of similar skill level are added to a worker's responsibilities to increase job diversity and employee motivation.

Job Enrichment

Enhancing a job by adding tasks that increase responsibility, autonomy, and opportunities to grow, improving employee satisfaction and performance.

Psychological State

The mental condition of an individual at a particular time, influenced by emotions, thoughts, and behavior patterns.