Last Year Harrington Inc

question 40

Multiple Choice

Last year Harrington Inc.had sales of $325,000 and a net income of $19,000,and its year-end assets were $250,000.The firm's total-debt-to-total-capital ratio was 15.0%.The firm finances using only debt and common equity and its total assets equal total invested capital.Based on the DuPont equation,what was the ROE? Do not round your intermediate calculations.

• A) 11.09%
• B) 8.85%
• C) 8.94%
• D) 9.03%
• E) 7.42%

Understand the critical factors that contribute to the successful implementation of change initiatives.

Understand the components of human capital and its significance in strategic planning.

Identify new areas of focus for today's HR managers.

Explain how HRM balances competing demands in organizations.

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Definitions:

Overhead

All ongoing business expenses not directly attributable to creating a product or service, including rent, utilities, and administrative costs.

Losing Money

The result of an investment or business activity where expenses and losses exceed revenues or gains.

Profitable

Being profitable means that a company or business generates more revenue than the costs involved in its operation, resulting in a positive financial gain.

Friendly Merger

A merger agreed upon by all parties involved, where the companies willingly combine due to perceived mutual benefits.