The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year,

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. The return on assets for the year is 10%.
What is Hidden Valley's net income for the year?

A) $5,000,000.

B) $55,000.

C) $5,500,000.

D) $50,000.

Answer: D

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 asset turnover?

A) 1.6 times.

B) 1.8 times.

C) 1.5 times.

D) 0.2 times.

Answer: A

Recognition of impairment for long-term assets is required if book value exceeds:

A) Original cost.

B) Fair value.

C) Future cash flows.

D) Accumulated depreciation.

Answer: C

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