BrightCo reported a net income of $75,000. The company's average total assets for the year were $600,000, and net sales were $950,000. What is the return on assets (ROA)? a) 7.9% b) 12.5% c) 10.0% d) 8.5%

BrightCo reported a net income of $75,000. The company's average total assets for the year were $600,000, and net sales were $950,000. What is the return on assets (ROA)? a) 7.9% b) 12.5% c) 10.0% d) 8.5%

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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Can you explain the correct approach to solve this general accounting question?

BrightCo reported a net income of $75,000. The
company's average total assets for the year were
$600,000, and net sales were $950,000. What is the return
on assets (ROA)?
a) 7.9%
b) 12.5%
c) 10.0%
d) 8.5%

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