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Use this balance sheet and income statement to answer the following question. Use ending balances whenever average balances are required for computing ratios. National Textile

Use this balance sheet and income statement to answer the following question. Use ending balances whenever average balances are required for computing ratios.

National Textile
Balance Sheet
December 31, 20x5
Assets Liabilities
Current assets $ 12,000 Current liabilities $ 8,000
Investments 2,000 Long-term liabilities 2,000
Property, plant, and equipment 16,000 Total liabilities $ 10,000
Intangible assets 10,000
Owner's Equity
Jonah Jones, Capital 30,000
Total liabilities and
Total assets $40,000 owner's equity $40,000

National Textile
Income Statement
For the Year Ended December 31, 20x5
Net sales $48,000
Cost of goods sold 16,000
Gross margin $32,000
Operating expenses 22,400
Net income $ 9,600

The return on assets for National Textile is

30 percent. 150 percent. 33-1/3 percent. 24 percent.

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