Exhibit 9-9
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 43

Multiple Choice

Exhibit 9-9
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/ Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2009.
(000s omitted)
$\begin{array}{lr} \text { Sales } &5,450 \\ \text { Cost of Goods Sold } &\underline {3,250 }\\ \text { Gross Profit } & 2,200 \\ \text {Depreciation } &820 \\ \text {Operating Expenses } &470 \\ \text { Administration Exp. } &\underline {115 }\\ \text {Operating Profit } & 795 \\ \text { Interest Expense } &\underline {88} \\ \text { Profit Before Taxes } & 707 \\ \text {Taxes } &\underline {247} \\ \text { Net Income } & 460 \\ \text {Dividende } &250\end{array}$ $\begin{array}{lrlr}\text { Assets } && {\text { Liabilities }} \\\hline \text { Cash } & 100 & \text { Notes Payable } & 850 \\\text { Accounts Receivable } & 1,250 & \text { Accounts Payable } & \underline{1,550} \\\text { Inventory } & \underline{1,125} & \text { Total Current Liab. } & {2,400}\\\text { Total Current Assets } & {2,475}&{\text { Long Term Debt }} & 425 \\\text { Net Fixed Assets } & \underline{1,450} & \text { Common Stock } &400 \\ {\text { Total Assets }} &{3,925} & \text { Retained Earnings } & \underline{700 }\\&&(\text { Total Liab \& Earnings }&3,925\\\end{array}$
-Refer to Exhibit 9-9. Calculate Rollerball Corporation's Net Profit Margin.

• A) 3.9%
• B) 8.4%
• C) 14.6%
• D) 40.4%
• E) 41.8%

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Definitions:

Tonometry

A diagnostic test that measures the pressure inside the eye, known as intraocular pressure, important for diagnosing glaucoma.

Funduscopy

A medical examination of the interior of the eye, including the retina, optic disc, and blood vessels, using a special instrument called an ophthalmoscope.

Urinalysis

Urinalysis is a test conducted on urine samples to detect disorders or diseases such as urinary tract infections, kidney disease, and diabetes.

Otoscope

A medical device used to look into the ears, allowing for the examination of the outer and middle ear.