Alma Appliance Service had net income for the year of $49,400. In addition, the balance sheet reports the following balances: Jan. 1, 2018 Dec. 31, 2018 Notes payable $34,000 $71,000 Cash $38,000 $32,600 Office furniture $27,000 $55,000 Building $140,000 $140,000 Accounts payable $12,500 $9,000 Total stockholders' equity $188,700 $204,800 Accounts receivable $3,400 $17,400 Equipment $21,000 $38,000 Office supplies $5,800 $1,800 Calculate the return on assets (ROA) for Alma Appliance Service the year ending December 31, 2018.

Alma Appliance Service had net income for the year of $49,400. In addition, the balance sheet reports the following balances: Jan. 1, 2018 Dec. 31, 2018 Notes payable $34,000 $71,000 Cash $38,000 $32,600 Office furniture $27,000 $55,000 Building $140,000 $140,000 Accounts payable $12,500 $9,000 Total stockholders' equity $188,700 $204,800 Accounts receivable $3,400 $17,400 Equipment $21,000 $38,000 Office supplies $5,800 $1,800 Calculate the return on assets (ROA) for Alma Appliance Service the year ending December 31, 2018.

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 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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