Flingen Inc. reveals the following information in their annual report for FY 2021Selected Income Statement Items:Sales$10,500,000Cost of goods sold$5,500,000Pretax earnings$650,000Selected Balance Sheet Items:Merchandise inventory$800,000Total assets$2,500,000Upper management plans to cut cost of goods sold by 4.5% for the coming year but retain the same sales and weeks of inventory. What is the return on assets estimated to be for 2022?Group of answer choices33.7%32.1%36.8%34.1%

Name: Flingen Inc. reveals the following information in their annual report
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Flingen Inc. reveals the following information in their annual report for FY 2021Selected Income Statement Items:Sales$10,500,000Cost of goods sold$5,500,000Pretax earnings$650,000Selected Balance Sheet Items:Merchandise inventory$800,000Total as

Return on assets (ROA) is a financial metric that measures a company's profitability relative to its total assets. ROA is expressed as a percentage. A higher ROA indicates that a company is more efficient in utilizing its assets to generate profits. The return on assets is 35.9%.None of the given options are correct.

Answered: Flingen Inc. reveals the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Flingen Inc. reveals the following information in their annual report for FY 2021

Selected Income Statement Items:

Sales	$10,500,000
Cost of goods sold	$5,500,000
Pretax earnings	$650,000

Selected Balance Sheet Items:
Merchandise inventory	$800,000
Total assets	$2,500,000

Upper management plans to cut cost of goods sold by 4.5% for the coming year but retain the same sales and weeks of inventory. What is the return on assets estimated to be for 2022?

Group of answer choices

33.7%

32.1%

36.8%

34.1%

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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