The Balance Sheet of Sound Designs Reports Total Assets of $750,000

question 71

Multiple Choice

The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the beginning and end of the year, respectively. Sales revenues are $1.5 million ($1.2 million in the previous year) , net income is $150,000, and net cash flows from operating activities are $175,000. What is Sound Designs' cash return on assets?

• A) 19.4%.
• B) 21.9%.
• C) 22.6%.
• D) 18.8%.

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Definitions:

Aldosterone

A steroid hormone produced by the adrenal glands that regulates salt and water balance in the body.

Adrenal Cortex

The outer region of the adrenal glands that produces steroid hormones including cortisol and aldosterone.

Glomerular Capsule

Cuplike structure that is the initial portion of a nephron.

Renal Pelvis

A central space, or cavity, in the kidney where urine collects before moving to the ureter.