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

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

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 profit margin?

A) 15%.

B) 14.12%.

C) 16%.

D) 12%.

Answer: D

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 return on assets?

A) 15%.

B) 14.12%.

C) 16%.

D) 12%.

Answer: A

Return on assets is equal to:

A) Profit margin plus asset turnover.

B) Profit margin minus asset turnover.

C) Profit margin times asset turnover.

D) Profit margin divided by asset turnover.

Answer: C