Following Are the Financial Statements for Starman Corporation for the Year

question 27

Multiple Choice

Following are the financial statements for Starman Corporation for the year ended December 31,20xx.Assume that all balance sheet amounts represent both average and ending figures. Starman Corporation
Balance Sheet
December $31,20 x x$
$\begin{array}{lrr}\text { Assets }\\\text { Cash } & \$ 20,000 \\\text { Marketable securities } & 30,000 \\\text { Accounts receivable } & 50,000 \\\text { Inventory } & 100,000 \\\text { Long-term receivables } & 35,000 \\\text { Property, plant, and equipment } & 65,000\\\text { Total assets }&\$300,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 100,000 \\\text { Long-term liabilities } & 60,000 \\\text { Stockholders' equity } & 140,000\\\text { Total liabilities and stockholders' equity }&\$300,000\end{array}$ $\begin{array}{c}\text {Starman Corporation}\\\text { Income Statement }\\\text {For the Year Ended December \( 31,20 \times\times \) }\\\\\begin{array}{lr}\text { Net sales } & \$ 400,000 \\\text { Cost of goods sold } & 240,000 \\ \text { Gross margin } & \$ 160,000 \\\text { Operating expenses } & 40,000 \\\text { Income before income taxes } & \$ 120,000 \\\text { Income taxes expense } & 30,000 \\\text { Net income } & \$ 90,000\end{array}\end{array}$
What is the return on assets for this corporation? Round your answer to one decimal place.

• A) 75.0 percent
• B) 53.3 percent
• C) 40.0 percent
• D) 30.0 percent

---

Definitions:

DSA

Digital Subtraction Angiography, a type of fluoroscopy technique used in radiology to visualize blood vessels by subtracting a pre-contrast image from subsequent images, after the contrast material has been injected.

Metabolism

The biochemical processes that occur within a living organism to maintain life, including the conversion of food to energy, the construction of proteins and nucleic acids, and the elimination of waste products.

Organization

In a biological context, it refers to the structured and regulated arrangement of living organisms, from cellular components to complex body systems.

Maturation

The process of becoming mature, involving growth and development that occurs in an organism over time.