Total Assets for Wendy's Pumpkins on 1 January 2020 was $650,000 and on 31 December 2020 was $850,000. Profit (before tax) for 2020 was $70,000, and the interest expense of the period was $20,000. What was the 2020 Rate of Return on Total Assets for Wendy's Pumpkins? formula: Rate of Return on Total Assets = Profit before Interest and Tax / %3D Average Total Assets Select one: O a. 4% O b. 9% O c. 16% O d. 12%

Total Assets for Wendy's Pumpkins on 1 January 2020 was $650,000 and on 31 December 2020 was $850,000. Profit (before tax) for 2020 was $70,000, and the interest expense of the period was $20,000. What was the 2020 Rate of Return on Total Assets for Wendy's Pumpkins? formula: Rate of Return on Total Assets = Profit before Interest and Tax / %3D Average Total Assets Select one: O a. 4% O b. 9% O c. 16% O d. 12%

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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Question

Total Assets for Wendy's Pumpkins on 1 January 2020 was $650,000 and
on 31 December 2020 was $850,000.
Profit (before tax) for 2020 was $70,000, and the interest expense of the
period was $20,000.
What was the 2020 Rate of Return on Total Assets for Wendy's
Pumpkins?
formula: Rate of Return on Total Assets = Profit before Interest and Tax /
Average Total Assets
Select one:
а. 4%
O b. 9%
О с. 16%
O d. 12%

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