Excerpts from TPX Company's December 31,2018 and 2017,financial Statements Are

question 95

Multiple Choice

Excerpts from TPX Company's December 31,2018 and 2017,financial statements are presented below: TPX Company's 2018 return on assets is (rounded to one decimal place) :
$$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \\\hline \text { Accounts receivable } & \$ 80,000 & \$ 72,000 \\\hline \text { Inventory } & 84,000 & 70,000 \\\hline \text { Net sales } & 400,000 & 372,000 \\\hline \text { Cost of goods sold } & 254,000 & 216,000 \\\hline \text { Total assets } & 850,000 & 810,000 \\\hline \text { Total stockholders' equity } & 500,000 & 450,000 \\\hline \text { Net income } & 75,000 & 56,000 \\\hline\end{array}$$

• A)48.2%.
• B)9.3%.
• C)8.8%.
• D)9.0%.

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Definitions:

Trust

A legal relationship in which a person who has legal title to property has the duty to hold it for the use or benefit of another person. The term is also used in a general sense to mean confidence reposed in one person by another.

Durable Power

A legal document that grants someone authority to act on another's behalf in legal or financial matters and remains in effect even if the grantor becomes incapacitated.

Healthcare

The organized provision of medical care to individuals or a community through services offered by medical professionals.

Incompetent

Lacking the necessary skills, knowledge, or ability to do something successfully or as required.