A Company's Return on Total Assets Equals 30

question 54

Multiple Choice

A company's return on total assets equals 30%.If net income and net sales are $900,000 and $8,900,000 respectively,what is the amount of total assets?

• A)$2,670,000
• B)$270,000
• C)$29,666,667
• D)$3,000,000
• E)$2,940,000

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Definitions:

Base Year

A specific year against which economic growth or other economic indicators are measured, serving as a standard of comparison.

Current Year

Refers to the ongoing calendar year at the time of the statement or document.

Business Cycle Troughs

The lowest point in the business cycle, marking the transition from the end of a recession to the start of an expansion.

CPI

The Consumer Price Index (CPI) calculates the average price of a specific set of consumer items and services, including food, transportation, and medical care, which is used to gauge inflation by examining their weighted average cost.