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[The following information applies to the questions displayed below.] Wichita, Inc. reported the following amounts on its financial statements prepared as of the end of
[The following information applies to the questions displayed below.] Wichita, Inc. reported the following amounts on its financial statements prepared as of the end of the current accounting period:
Revenues | $ | 200,000 | ||||
Expenses | 180,000 | |||||
Net income | $ | 20,000 | ||||
Current assets | $ | 50,000 | ||||
Long-term assets | 150,000 | |||||
Total assets | $ | 200,000 | ||||
Current liabilities | $ | 20,000 | ||||
Long-term liabilities | 80,000 | |||||
Total liabilities | 100,000 | |||||
Common stock | $ | 40,000 | ||||
Retained earnings | 60,000 | |||||
Total equity | 100,000 | |||||
Total liabilities and equity | $ | 200,000 | ||||
What is the companys return-on-assets ratio?
Multiple Choice
5%
10%
20%
50%
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