A company's balance sheet reports stockholders' equity of $400,000, total liabilities of $600,000, and total assets of $1,000,000. What is the company's debt to equity ratio?

A) 1.5

B) 0.66

C) 2.5

D) 1.0

Answer: A

The balance sheet of Montezuma reports total assets of $900,000 and $1,100,000 at the beginning and end of the year, respectively. The net income for the year is $100,000. What is Montezuma's return on assets?

A) 10%

B) 11%

C) 9%

D) 25%

Answer: A