Solved

Peartree Inc Additional Information Calculate the Return on Total Assets for the Year 2015

Question 98

Multiple Choice

Peartree Inc. provides the following data: 20152014 Cash $40,000$25,000 Accounts Receivable, Net 98,00062,000 Merchandise Inventory 70,00050,000 Property, Plant, and Equipment, Net 180,000120,000 Total assets $388,000$257,000\begin{array} { | l | r | r | } \hline & \underline { 2015 } & \underline { 2014 } \\\hline \text { Cash } & \$ 40,000 & \$ 25,000 \\\hline \text { Accounts Receivable, Net } & 98,000 & 62,000 \\\hline \text { Merchandise Inventory } & 70,000 & 50,000 \\\hline \text { Property, Plant, and Equipment, Net } & \underline { 180,000 } & \underline { 120,000 } \\\hline \text { Total assets } & \$ 388,000 & \$ 257,000 \\\hline\end{array} Additional information:
 Net sales $500,000 Cost of Goods Sold 150,000 Interest expense 20,000 Net income 180,000\begin{array} { | l | r | } \hline \text { Net sales } & \$ 500,000 \\\hline \text { Cost of Goods Sold } & 150,000 \\\hline \text { Interest expense } & 20,000 \\\hline \text { Net income } & 180,000 \\\hline\end{array} Calculate the return on total assets for the year 2015.


A) 67.25%
B) 62.02%
C) 72.36%
D) 65.00%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents