Chapter 2, Problem 2.5AP

Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA)? Inventory         12,500 Current Assets         50,000 Current Liabilities         40,000 Non-current Assets         90,000 Net Profit         12,000 Shareholders' Equity         65,000 Select one: a. 12.2% b. 18.5% c. 9.23% d. 13.3% Clear my choice 2) Which one of the following defines a cash flow statement correctly? Select one: a. A cash flow statement is a financial statement which estimates cash inflows and cash outflows for a future period. b. A cash flow statement is statement of changes in cash position between the beginning and end of the period. It is a statement which summarises the sources from which cash payments are made during a particular period of time. c. A cash flow statement is a document which report the cash owned by a company in the details of difference…