Peartree Ltd Provides the Following Data Additional Information Calculate the Return on Total Assets for the Year 2017

question 8

Multiple Choice

Peartree Ltd provides the following data:
$$\begin{array} { | l | l | r | } \hline & \underline { 2017 } & \underline { 2016 } \\\hline \text { Cash } & \$ 45,000 & \$ 25000 \\\hline \text { Accounts receivable, net } & 98,000 & 62000 \\\hline \text { Inventory } & 77,000 & 50000 \\\hline \text { Property, plant, and equipment, net } & 180,000 & \underline { 120000 } \\\hline \text { Total assets } & \$ 400,000 & \$ 257000 \\\hline\end{array}$$
Additional information:
$$\begin{array} { | l | l | } \hline \text { Net sales } & \$ 530,000 \\\hline \text { Cost of sales } & 180,000 \\\hline \text { Interest expense } & 21,000 \\\hline \text { Net profit } & 183,000 \\\hline\end{array}$$
Calculate the return on total assets for the year 2017.

• A) 62.1%
• B) 51%
• C) 71.21%
• D) 45.75%

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, which affects international trade and investments.

Equipment

Tangible property used in business operations that is not considered inventory and is expected to be used long-term.

Functional Currency

The currency of the primary economic environment in which an entity operates, and in which it generates and spends cash.

Exchange Rates

The price of one country's currency in terms of another's, used in international trade and investment.