The following selected data come from Celebration Company's balance sheets and income statements over three recent years. Based on the data, what is Celebration's return on assets for each of the three years, and do the ratios show deterioration or improvement in Celebration's profitability? Assume that the industry average is 0.075 or 7.5%.

A) 0.039; 0.027; 0.023; weak but improving
B) 0.39; 0.40; 0.41; weak but improving slightly
C) 2.56; 2.53; 2.46; strong and improving slightly
D) 0.47; 0.46; 0.45; weak and deteriorating slightly

Question

The following selected data come from Celebration Company's balance sheets and income statements over three recent years. Based on the data, what is Celebration's return on assets for each of the three years, and do the ratios show deterioration or improvement in Celebration's profitability? Assume that the industry average is 0.075 or 7.5%.

A) 0.039; 0.027; 0.023; weak but improving 
B) 0.39; 0.40; 0.41; weak but improving slightly 
C) 2.56; 2.53; 2.46; strong and improving slightly 
D) 0.47; 0.46; 0.45; weak and deteriorating slightly

Quizplus · Accepted Answer

The Answer of  The following selected data come from Celebration Company's balance sheets and income statements over three recent years. Based on the data, what is Celebration's return on assets for each of the three years, and do the ratios show deterioration or improvement in Celebration's profitability? Assume that the industry average is 0.075 or 7.5%.

A) 0.039; 0.027; 0.023; weak but improving 
B) 0.39; 0.40; 0.41; weak but improving slightly 
C) 2.56; 2.53; 2.46; strong and improving slightly 
D) 0.47; 0.46; 0.45; weak and deteriorating slightly

The Following Selected Data Come from Celebration Company's Balance Sheets