Saturday, October 10, 2020

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. Net income and sales for the year are $85,000 and $1,700,000, respectively.
What is Purdy's return on assets?



A) 10%.

B) 20%.

C) 200%.

D) 5%.


Answer: A


The balance sheet of Paradise Pizza reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively.
What is Paradise Pizza's asset turnover?



A) 1.25 times.

B) 1.33 times.

C) 8.33 times.

D) 0.80 times.


Answer: A

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