B&B Pharmaceutical had net income of $210 million and sales totaling $44,600 million. Its assets at the end of the year totaled $2,000 million. Interest expense was $120 million and the income tax rate was 30 percent. What is B&Bs return on assets?

A. 14.70%

B. 16.20%

C. 18.71%

D. 12.06%

B&B reported total assets at December 31 totaling $300,000. The following selected amounts were taken from its financial statements for its year ending December 31:

Retained earnings (Fund Balance)	$50,000	Sales	$340,000
Accounts receivable	7,000	Common stock	150,000
Inventory	21,000	Net income	115,000
Notes payable	16,000	Dividends paid	12,000

How much is the companys return on equity as of December 31?

A. 10.35%

B. 67.99%

C. 57.50%

D. 60.25%

B&B financial results are presented below for all Divisions:

Operating profit	$435,000
Cash flow from:
Operations	285,000
Investing	(125,600)
Financing	(54,000)

What cash management actions most likely occurred during the year?

1. B&B used cash from operations and from selling long-term assets to pay dividends.
2. B&B used cash from bank loans or from selling stock and from operations to buy long-term assets.
3. B&B used cash from bank loans or from selling stock to fund operations and to buy long-term assets.
4. B&B used cash from operations to buy long-term assets and to repay debt.