Walton,Inc Additional Information for the Year Ending December 31,2019 Calculate the Rate of Return on Total Assets for 2019

question 50

Multiple Choice

Walton,Inc.provides the following data: $$\begin{array} { | l | r | r | } \hline & { 2019 } & { \underline { 2018 } } \\\hline \text { Cash } & \$ 45,000 & \$ 25,000 \\\hline \text { Accounts Receivable, Net } & 98,000 & 62,000 \\\hline \text { Merchandise Inventory } & 73,000 & 50,000 \\\hline \text { Property, Plant, and Equipment, Net } & \underline { 183,000 } & \underline { 120,000 } \\\hline \text { Total Assets } & \$ 399,000 & \$ 257,000 \\\hline\end{array}$$ Additional information for the year ending December 31,2019:
$$\begin{array} { | l | r | } \hline \text { Net Credit Sales } & \$ 510,000 \\\hline \text { Cost of Goods Sold } & 190,000 \\\hline \text { Interest Expense } & 24,000 \\\hline \text { Net Income } & 181,000 \\\hline\end{array}$$ Calculate the rate of return on total assets for 2019.(Round your answer to two decimal places.)

• A) 45.36%
• B) 62.50%
• C) 70.43%
• D) 51.38%

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Definitions:

Purchase Account

An account used in accounting to record the total purchases of goods and services by a company.

Inventory Account

An account used to record the value of inventory held by a company, including raw materials, work-in-progress, and finished goods.

Cost of Goods Available

The total cost of goods a company has to sell during a specific period, calculated by adding the beginning inventory to the cost of goods purchased.

Purchase Returns

Refers to the process of returning goods previously bought to the supplier due to various reasons like defects or dissatisfaction.