Average assets are $2375315. Sales for the yeartotaled $3,000,000 and expenses totaled $2,950,000. Cash flow from operating activitiestotaled $700,000. Prepaid insurance has an endingbalance of $45,000. What was return on assets (inpercentage terms)?

Step 1: Given data :Return on Assets (ROA) is a financial ratio that indicates how efficiently a…

Answered: Average assets are $2375315. Sales for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Find the operating cash flow for the year for Monisan and Sons if it had sales revenue of $81,200,000, cost of goods sold of $35,700,000, sales and administrative costs of $6,800,000, depreciation expense of $8,000,000, and a tax rate of 30%.
7. The financial statements showed the following: Operating income $2,750,000, Depreciation $1,350,000, Expenditures on fixed assets and net operating working capital $860,000. Tax rate is 35%. Compute for the free cash flow.
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A company had net income of $244,839. Depreciation expense is $20,103. During the year, Accounts Receivable and Inventory increased by $18,423 and $39,765, respectively. Prepaid Expenses and Accounts Payable decreased by $2,854 and $5,603, respectively. There was also a loss on the sale of equipment of $6,008. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?
MANUAL SOLUTION AND CASH FLOW DIAGRAM !!
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Average assets are $2375315. Sales for the year totaled $3,000,000 and expenses totaled $ 2,950,000. Cash flow from operating activities totaled $700,000. Prepaid insurance has an ending balance of $45,000. What was return on assets (in percentage terms)?