How does tech track cash return on assets

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Reference no: EM132530109

Question 1: Which of the following is added to net income as an adjustment under the indirect method of preparing the statement of cash flows?

Multiple Choice

Option 1: Salaries payable increase.

Option 2: Gain on the sale of land.

Option 3: Inventory increase.

Option 4: Accounts receivable increase.

Question 2: The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in the previous year), net income is $40,000, and net cash flows from operating activities are $50,000. How does Tech Track's cash return on assets compare to the industry average of 10%?

Multiple Choice

Option 1: Better.

Option 2: Worse.

Option 3: Same as.

Option 4: Cannot be determined with the data provided.

Reference no: EM132530109

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