Compute Return on Assets Given Net Income of $13,764,beginning Assets

question 216

Multiple Choice

Compute return on assets given net income of $13,764,beginning assets of $120,000,and ending assets of $176,000.

• A)4.65%
• B)7.82%
• C)9.3%
• D)11.47%
• E)21.51%

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Definitions:

Total Disbursements

The total amount of money paid out by a business over a set period, including expenses, investment purchases, and debt repayments.

Credit Products

Financial products offered by institutions that provide borrowers with funds under the agreement of future repayment, including interest and other terms.

Receivables Balance

The cumulative sum of funds due to a business from its clients for products or services provided on a credit basis.

Accounts Receivable Period

The typical duration in days that a company requires to receive payment following a sale.