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
