Total return on assets at December 20X4 was:Multiple ChoiceNot enough data provided to calculate itBetween 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 20X3Lincoln Corp. - Income Statement asof December 31st, 20X4Revenue$5,000$3,200$1,800Cost of Goods SoldGross ProfitOperating expensesOperating Profit$1,350450$Loss on sale of equipmentIncome tax expense20180Profit for 20X4250Lincoln Corp.Balance Sheet - December 3120X420X3Assets$ 1,800$ 1,000$Cash$ 2,350Accounts Receivable$450$800700InventoryPrepaid ExpensesEquipmentAccumulated Depreciation$$ 4080$ 1,500$(1,350) $(1,000)$ 4,080$ 2,500Total Assets$ 4,790Liabilities & Shareholders' EquityAccount PayableOperating expenses payableIncome taxes payableDividends Payable$680$$$100350$210100$$12050$$Long-term Notes Payable$30070Common shares$ 2,500$ 2,500Retained EarningsTotal Liabilities & Shareholders' Equity$930$960$ 4,790$ 4,790Additional Information for Lincoln Corp:7) Operating expenses for 20X4 included depreciation for $5008) Accounts payable relate exclusively to the purchase of inventory9) Machine with a historical cost of $200 was sold at a loss of $2010) A new machine was purchased during the year for $1,20011) Dividends were declared12) Long term notes payable were issued

Return on Asset= Net income/ Average Assets Average assets= (Opening total asset + closing total…

Answered: Total return on assets at December 20x4…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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