Cash reserves on the Tri-State Medical Equipment Corporation's balance sheet presently amount to $111,200. When Tri-State pays cash for 20% of the purchase price of a new delivery truck, the cash payment will: 1) increase the company's cash reserves. 2) decrease cash on the balance sheet. 3) require an entry on the Statement of Retained Earnings. 4) require an entry to the Reserve for Depreciation on the income statement. 2. If an organization has operating income of $120,000, net income of $150,000, total revenue of $2,000,000, total assets of $1,000,000, and a net worth of $500,000, return on assets is: 1) 6.0%. 2) 7.5%. 3) 12.0%. 4) 15.0%. 5) 30.0%.
Cash reserves on the Tri-State Medical Equipment Corporation's balance sheet presently amount to $111,200. When Tri-State pays cash for 20% of the purchase price of a new delivery truck, the cash payment will: 1) increase the company's cash reserves. 2) decrease cash on the balance sheet. 3) require an entry on the Statement of Retained Earnings. 4) require an entry to the Reserve for Depreciation on the income statement. 2. If an organization has operating income of $120,000, net income of $150,000, total revenue of $2,000,000, total assets of $1,000,000, and a net worth of $500,000, return on assets is: 1) 6.0%. 2) 7.5%. 3) 12.0%. 4) 15.0%. 5) 30.0%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ma4.
1.
Cash reserves on the Tri-State Medical Equipment Corporation's
presently amount to $111,200. When Tri-State pays cash for 20% of the purchase
price of a new delivery truck, the cash payment will:
1) increase the company's cash reserves.
2) decrease cash on the balance sheet.
3) require an entry on the Statement of
4) require an entry to the Reserve for
2.
If an organization has operating income of $120,000, net income of $150,000, total
revenue of $2,000,000, total assets of $1,000,000, and a net worth of $500,000,
return on assets is:
1) 6.0%.
2) 7.5%.
3) 12.0%.
4) 15.0%.
5) 30.0%.
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