Doherty Corporation Had Net Income of $30,000, Net Sales of $1,000,000

question 139

Multiple Choice

Doherty Corporation had net income of $30,000, net sales of $1,000,000, and average total assets of $500,000. Its return on total assets is:

• A) 3%
• B) 200%
• C) 6%
• D) 17%
• E) 1.5%

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Definitions:

Cost-Effective Changes

Adjustments or improvements to processes, systems, or products that maximize benefits while minimizing costs.

Production

The process of creating goods or services through the combination of labor, materials, and technology.

Operation

The day-to-day activities necessary for an organization to function effectively and achieve its goals.

Raw Materials

The fundamental components or basic substances used in the production of goods or services.