The balance sheet of Purdy's BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectively.

The balance sheet of Purdy's BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectively. The return on assets for the year is 20%.
What is Purdy's net income for the year?

A) $4,500,000.

B) $170,000.

C) $4,250,000.

D) $85,000.

Answer: B

The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively.
What is Hidden Valley's return on assets?

A) 10%.

B) 20%.

C) 160%.

D) 18%.

Answer: B

The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively.
What is Hidden Valley's profit margin?

A) 10%.

B) 12.5%.

C) 18%.

D) 22%.

Answer: B