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Total return on assets at December 20x4 was: Multiple Choice O Not enough data provided to calculate it O Between 17% and 33% O Between 34% and 68% O Equal or below 16% O Equal or above 69%

Total return on assets at December 20x4 was: Multiple Choice O Not enough data provided to calculate it O Between 17% and 33% O Between 34% and 68% O Equal or below 16% O Equal or above 69%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Total return on assets at December 20X4 was: Multiple Choice Not enough data provided to calculate it Between 17% and 33% Between 34% and 68% Equal or below 16% Equal or above 69%
Transcribed Image Text:Total return on assets at December 20X4 was: Multiple Choice Not enough data provided to calculate it Between 17% and 33% Between 34% and 68% Equal or below 16% Equal or above 69%
Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp (Linc) for December 31, 20X4 and 20X3 Lincoln Corp. - Income Statement as of December 31st, 20X4 Revenue $5,000 $3,200 $1,800 Cost of Goods Sold Gross Profit Operating expenses Operating Profit $1,350 450 $ Loss on sale of equipment Income tax expense 20 180 Profit for 20X4 250 Lincoln Corp. Balance Sheet - December 31 20X4 20X3 Assets $ 1,800 $ 1,000 $ Cash $ 2,350 Accounts Receivable $ 450 $ 800 700 Inventory Prepaid Expenses Equipment Accumulated Depreciation $ $ 40 80 $ 1,500 $(1,350) $(1,000) $ 4,080 $ 2,500 Total Assets $ 4,790 Liabilities & Shareholders' Equity Account Payable Operating expenses payable Income taxes payable Dividends Payable $ 680 $ $ $ 100 350 $ 210 100 $ $ 120 50 $ $ Long-term Notes Payable $ 300 70 Common shares $ 2,500 $ 2,500 Retained Earnings Total Liabilities & Shareholders' Equity $ 930 $ 960 $ 4,790 $ 4,790 Additional Information for Lincoln Corp: 7) Operating expenses for 20X4 included depreciation for $500 8) Accounts payable relate exclusively to the purchase of inventory 9) Machine with a historical cost of $200 was sold at a loss of $20 10) A new machine was purchased during the year for $1,200 11) Dividends were declared 12) Long term notes payable were issued
Transcribed Image Text:Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp (Linc) for December 31, 20X4 and 20X3 Lincoln Corp. - Income Statement as of December 31st, 20X4 Revenue $5,000 $3,200 $1,800 Cost of Goods Sold Gross Profit Operating expenses Operating Profit $1,350 450 $ Loss on sale of equipment Income tax expense 20 180 Profit for 20X4 250 Lincoln Corp. Balance Sheet - December 31 20X4 20X3 Assets $ 1,800 $ 1,000 $ Cash $ 2,350 Accounts Receivable $ 450 $ 800 700 Inventory Prepaid Expenses Equipment Accumulated Depreciation $ $ 40 80 $ 1,500 $(1,350) $(1,000) $ 4,080 $ 2,500 Total Assets $ 4,790 Liabilities & Shareholders' Equity Account Payable Operating expenses payable Income taxes payable Dividends Payable $ 680 $ $ $ 100 350 $ 210 100 $ $ 120 50 $ $ Long-term Notes Payable $ 300 70 Common shares $ 2,500 $ 2,500 Retained Earnings Total Liabilities & Shareholders' Equity $ 930 $ 960 $ 4,790 $ 4,790 Additional Information for Lincoln Corp: 7) Operating expenses for 20X4 included depreciation for $500 8) Accounts payable relate exclusively to the purchase of inventory 9) Machine with a historical cost of $200 was sold at a loss of $20 10) A new machine was purchased during the year for $1,200 11) Dividends were declared 12) Long term notes payable were issued
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