During 2010,Heckart Corporation Had Sales of $250,000,net Income of $25,000,average

question 144

Multiple Choice

During 2010,Heckart Corporation had sales of $250,000,net income of $25,000,average total assets of $350,000,dividend payments of $17,500,net cash flows from operating activities of $26,000,purchases of plant assets of $37,500,and sales of plant assets of $45,000.Cash flows to assets equals (Round amounts to one decimal place)

• A) 13.0 percent.
• B) 10.4 percent.
• C) 8.7 percent.
• D) 7.4 percent.

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Definitions:

Spot Rate

This is the current market price at which a particular currency can be bought or sold for immediate delivery.

Cash Flow Hedge

A financial strategy used to manage the risk of fluctuating cash flows due to changes in exchange rates, interest rates, or commodity prices.

Net Method

An accounting system that records transactions with their net effect, considering any discounts or allowances for prompt payment.

Loan Liability

A financial obligation representing borrowed funds that the borrower is legally required to repay to the creditor, typically with interest.