Use This Balance Sheet and Income Statement to Answer the Following

question 70

Multiple Choice

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios.

-The return on equity for National Textile is

• A)40 percent.
• B)67 percent.
• C)47 percent.
• D)32 percent.

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Definitions:

NPV

The calculation used to find the current value of future cash flows minus initial investments, which helps in evaluating the feasibility of investments or projects.

Credit Policy

The guidelines a company follows to determine creditworthiness, terms of credit, and how to collect owed money, affecting its trade credit and financing approaches.