QUESTION 16

Profit margin = 3%

Total asset turnover = 2

Equity multiplier = 4

The cooperative's return on equity (ROE) is

1. 6%
2. 8%
3. 12%
4. 24%

6 points

QUESTION 17

Profit margin = 3%

Total asset turnover = 2

Equity multiplier = 4

The cooperative's return on investment (ROI) is

1. 3%
2. 6%
3. 8%
4. 12%

6 points

QUESTION 18

Current liabilities = 4,020

Long-term liabilities = 1,700

Members' equity = 6,300

Total assets are

1. 5,720
2. 6,300
3. 10,320
4. 12,020

6 points

QUESTION 19

Total sales = $250,000

Cost of goods sold = $170,000

Total expenses = $50,000

Other revenue = $10,000

Other deductions = $20,000

Net income is

1. $10,000
2. $20,000
3. $40,000
4. $50,000

6 points

QUESTION 20

Cash = $500

Land = $800

Inventories = $2,500

Equipment = $3,200

Total current assets are

1. $1,300
2. $3,000
3. $4,000
4. $7,000