Use the Following Information to Answer the Next Ten Questions

question 70

Multiple Choice

Use the following information to answer the next ten questions:
Excerpts from Stealth Company's December 31,2015 and 2014,financial statements are presented below:

-Stealth Company's 2015 return on assets is:

• A)7.1%.
• B)7.8%.
• C)13.5%.
• D)44.7%.

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Definitions:

Perpetual Inventory Systems

A method of inventory management where inventory levels are updated in real-time after every sale or purchase transaction.

Purchases Returns and Allowances

Transactions where buyers return damaged or unsatisfactory products to the seller, or receive a price reduction as compensation.

Merchandiser

A person or company involved in the business of purchasing goods and selling them at retail or wholesale.

Net Income

The income a company ultimately makes after all operational costs and taxes are deducted from revenue.