The Balance Sheet of Tech Track Reports Total Assets of $400,000

question 25

Multiple Choice

The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year,respectively.Sales revenues are $1.1 million ($0.8 million in the previous year) ,net income is $40,000,and net cash flows from operating activities are $50,000.How does Tech Track's cash return on assets compare to the industry average of 10%?

• A)Better.
• B)Worse.
• C)Same as.

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares, typically at the discretion of the bondholder.

Bond Ratings

A classification system that denotes the credit quality and perceived risk of bonds issued by corporations, municipalities, or sovereign entities.

Financial Projections

Forecasts of future revenue, expenses, and other financial details of a company.

Convertible Debt

A type of bond or loan that can be converted into a predetermined amount of the company's equity at certain times during its lifespan, usually at the discretion of the bondholder.