Table 152 the Company Earns 5 Percent on Current Assets

Multiple Choice

Table 15.2 The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent.
-The firm's initial annual profits on total assets are ________. (See Table 15.2)

A) $2,500
B) $3,500
C) $3,000
D) $4,500