A company reports net income of $8,000, sales revenue of $18,000, and average total assets of $24,000. Calculate the company's return on assets. a. 44 percent (rounded) b. 33 percent (rounded) c. 75 percent (rounded) d. There is insufficient information to calculate this ratio.

A company reports net income of $8,000, sales revenue of $18,000, and average total assets of $24,000. Calculate the company's return on assets. a. 44 percent (rounded) b. 33 percent (rounded) c. 75 percent (rounded) d. There is insufficient information to calculate this ratio.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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I need answer account question

A company reports net income of $8,000, sales revenue of $18,000, and
average total assets of $24,000. Calculate the company's return on
assets.
a. 44 percent (rounded)
b. 33 percent (rounded)
c. 75 percent (rounded)
d. There is insufficient information to calculate this ratio.

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COMPANY B Balance Sheets December 31, Year 2 and Year 1 Year 2 Year 1 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land $ 217,600 58,000 85,000 3,000 $ 110,000 82,000 70,000 1,000 380,000 690,000 (328,000) $1,105,600 380,000 570,000 (168,000) $1,045,000 Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $ 89,000 $4 5,000 7,000 75,000 11,000 4,000 120,000 240,000 600,000 284,600 $1,105,600 $1,045,000 600,000 115,000 Total liabilities and stockholders' equity Additional information for Year 2: 1. Net income is $169,600. 2. Sales on account are $1,183,000. 3. Cost of goods sold is $953,250. Required: 1. Calculate the following profitability ratios for Year 2: (Round vour answers to 1 decimal place.)
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