Flingers Inc. reveals the following information in their annual report for FY 2004. Earnings and Expenses Sales $10,000,000 Cost of goods sold $5,000,000 Pre-tax earnings $500,000 Merchandise inventory $80,000 Total assets $2,000,000 What is Flingers' return on assets?

25%

Explanation:

Given: Sales= $10,000,000

           Cost of goods sold= $5000000.

           Pre-tax earning= $500000.

           Merchandise inventory= $80000.

           Total assets= $2000000.

Now, computing the value of return on assets.

Formula;

⇒

⇒

∴ Return on assets=

Hence, Flinger´s return on assets is 25%

answer; no individual buyer or seller has any significant impact on the market price;

yes the correct answer was

b.the increased supply will create a surplus.