Calculate Return on Assets from the Following Information: Net Income

question 4

Multiple Choice

Calculate return on assets from the following information: Net income $1,800,000
Return on equity 25%
Current Assets $350,000
Land and building $250,000
Sales $1,500,000

• A)1:1
• B)3:2
• C)4:1
• D)2:2
• E)3:1

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded meets the quantity supplied, resulting in a stable market condition.

Surplus

An excess of production or supply over demand, often resulting in lower prices or wasted resources.

Demand for Electronic Readers

The consumer desire or market requirement for digital devices designed for reading e-books and similar electronic documents.

Supply

The total amount of a specific good or service that is available to consumers at a given price level, at a specific time.