A company's year-end selected financial data is shown below. Year 2 Year 1 Current assets $250,000 $175,000 Total assets 600,000 500,000 Total liabilities 300,000 225,000 Net sales 200,000 150,000 Net income 75,000 60,000 The company's rate of return on assets and rate of return on equity for Year 2 are: a. 12% and 22%, respectively. Ob. 13% and 25%, respectively. Oc. 14% and 26%, respectively. d. 36% and 25%, respectively.
A company's year-end selected financial data is shown below. Year 2 Year 1 Current assets $250,000 $175,000 Total assets 600,000 500,000 Total liabilities 300,000 225,000 Net sales 200,000 150,000 Net income 75,000 60,000 The company's rate of return on assets and rate of return on equity for Year 2 are: a. 12% and 22%, respectively. Ob. 13% and 25%, respectively. Oc. 14% and 26%, respectively. d. 36% and 25%, respectively.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...
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![A company's year-end selected financial data is shown below.
Year 2 Year 1
Current assets $250,000 $175,000
Total assets
600,000 500,000
Total liabilities
300,000 225,000
Net sales
200,000 150,000
Net income
75,000
60,000
The company's rate of return on assets and rate of return on equity for Year 2 are:
a. 12% and 22%, respectively.
Ob. 13% and 25%, respectively.
Oc. 14% and 26%, respectively.
d. 36% and 25%, respectively.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1ac4a5c-5c91-4743-9545-fc03c7695e62%2Fa48b8bec-0952-4de7-91bf-b0c338bd68b4%2F2jkrv8t_processed.png&w=3840&q=75)
Transcribed Image Text:A company's year-end selected financial data is shown below.
Year 2 Year 1
Current assets $250,000 $175,000
Total assets
600,000 500,000
Total liabilities
300,000 225,000
Net sales
200,000 150,000
Net income
75,000
60,000
The company's rate of return on assets and rate of return on equity for Year 2 are:
a. 12% and 22%, respectively.
Ob. 13% and 25%, respectively.
Oc. 14% and 26%, respectively.
d. 36% and 25%, respectively.
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