Cash sales—$125,000
Credit sales—$120,000
Accounts receivable, beginning—$145,000
Accounts receivable, ending—$135,000
9. What amount of sales revenue was shown on the income statement?
A. $120,000 C. $245,000
B. $125,000 D. $255,000
Use the following information to answer questions 10 and 11:
Sales revenue—$350,000
Cost of goods sold—$250,000
Rent—$50,000
Insurance—$32,500
Operating assets at the beginning of the year—$40,000
Operating assets at the end of the year—$44,000
10. What is the return on investment (ROI)? (Round your answer to two decimals.)
A. 2.38 C. 8.33
B. 5.00 D. 41.67
11. Which of the following would increase the company’s ROI?
A. Increasing sales price or volume
B. Decreasing sales price or volume
C. Increasing operating expenses
D. Increasing investment in operating assets
Credit sales—$120,000
Accounts receivable, beginning—$145,000
Accounts receivable, ending—$135,000
9. What amount of sales revenue was shown on the income statement?
A. $120,000 C. $245,000
B. $125,000 D. $255,000
Use the following information to answer questions 10 and 11:
Sales revenue—$350,000
Cost of goods sold—$250,000
Rent—$50,000
Insurance—$32,500
Operating assets at the beginning of the year—$40,000
Operating assets at the end of the year—$44,000
10. What is the return on investment (ROI)? (Round your answer to two decimals.)
A. 2.38 C. 8.33
B. 5.00 D. 41.67
11. Which of the following would increase the company’s ROI?
A. Increasing sales price or volume
B. Decreasing sales price or volume
C. Increasing operating expenses
D. Increasing investment in operating assets