Analyze the influence of return on sales and asset turnover on the return on assets (ROA). Use absolute differences method. Year 200A Year 200B Sales, S'000 Profit, S'000 Assets, $'000 45612 46418 12116 12813 32745 33186
Analyze the influence of return on sales and asset turnover on the return on assets (ROA). Use absolute differences method. Year 200A Year 200B Sales, S'000 Profit, S'000 Assets, $'000 45612 46418 12116 12813 32745 33186
Chapter1: Financial Statements And Business Decisions
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The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Analyze the influence of return on sales and asset turnover on the return on assets (ROA). Use absolute differences
method.
Year 200A
Year 200B
Sales, S'000
Profit, S'000
45612
46418
12116
12813
Assets, $'000
32745
33186](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6988beb-98dd-46a7-ab1e-1c6cfa160eb5%2F5aabbd39-88dd-42c0-b405-e89c2015d467%2Fdgtvdig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Analyze the influence of return on sales and asset turnover on the return on assets (ROA). Use absolute differences
method.
Year 200A
Year 200B
Sales, S'000
Profit, S'000
45612
46418
12116
12813
Assets, $'000
32745
33186
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