Richard's Sporting Goods Reports Net Income of $100,000,net Sales of $500,000,and

question 125

Multiple Choice

Richard's Sporting Goods reports net income of $100,000,net sales of $500,000,and average assets of $1,000,000.The return on assets is:

• A)10%.
• B)20%.
• C)50%.
• D)5 times.

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Definitions:

Contra Asset

An account on a company's balance sheet that reduces the value of a related asset account.

Balance Sheet

A financial statement that provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time.

Neighborhoods

Geographic areas within a city or town, characterized by distinct attributes and often by a sense of community among residents.

Comprised

Made up of; consists of various components or elements.