Dew Point Dynamite Pty Ltd Generated a 1

question 51

Multiple Choice

Dew Point Dynamite Pty Ltd generated a 1.23 total asset turnover in its latest fiscal year on assets of $2 112 077.The firm has total liabilities of $950 997.The firm's net profit margin was 10.3%.What is Dew Point's return on equity? Round to the nearest 0.1%.

• A)23.1%
• B)12.6%
• C)5.5%
• D)18.2%

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Definitions:

Acquired Net Assets

The total assets purchased from a company during an acquisition minus the liabilities assumed in the process.

Equipment Account

An account on the balance sheet where the cost of purchasing equipment is recorded and progressively depreciated over time.

Specific Identification

An inventory costing method that tracks the actual cost of each individual item in inventory and assigns this cost to the goods sold.

FIFO Assumption

The First-In, First-Out method is an accounting assumption used to manage inventory and cost of goods sold, assuming the first items placed into inventory are sold first.