1. Prowler reports net income of $250,000. The return on assets for the year is 20%. What is Prowler's average total assets for the year?

a. $1,250,000

b. $1,000,000

c. $1,500,000

d. $250,000

2. The balance sheet of Montezuma reports total assets of $900,000 and $1,100,000 at the beginning and end of the year, respectively. The net income for the year is $100,000. What is Montezuma's return on assets?

a. 10%

b. 11%

c. 9%

d. 25%

3. The balance sheet of Sub America reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Sub America's net income for the year?

a. $42,500.

b. $45,000.

c. $4,250,000.

d. $85,000.

4. Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2018. What amount will be recorded for interest expense for the first payment on January 31, 2018?

a. $625

b. $125

c. $7,500

d. $1,000