EverGreen Inc. reports the following income statement and balance sheet information for the current year: • Net Income: $280,000 • Interest Expense: $50,000 Average Total Assets: $3,400,000 Determine the Return on Total Assets (ROTA).

EverGreen Inc. reports the following income statement and balance sheet information for the current year: • Net Income: $280,000 • Interest Expense: $50,000 Average Total Assets: $3,400,000 Determine the Return on Total Assets (ROTA).

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 32BEB

See similar textbooks

Related questions

Q: Winter company has provided solution general accounting question

A: Step 1: Definition of Contribution Margin RatioThe contribution margin ratio is a financial metric…

Q: Parker company purchased equipment

A: Step 1: Definition of Straight-Line DepreciationThe straight-line depreciation method allocates the…

Q: Don't use ai given answer accounting questions

A: Step 1: Define Under Absorption of OverheadGenerally manufacturing industries use a predetermined…

Q: Provide answer financial accounting

A: Step 1: Define Holding Period ReturnHolding period return is any increment or reduction in the…

Q: Answer? ? General Accounting

A: Step 1: Define Predetermined Overhead RateThe Predetermined Overhead Rate is a rate used to…

Q: Can you help me with accounting questions

A: Step 1: Definition of Current YieldThe current yield is a measure of the bond's annual interest…

Q: What is the company's return on common stockholder's equity for 2022 on these financial accounting…

A: Step 1: Define Return on Common Stockholders' Equity (ROE):Return on Common Stockholders' Equity…

Q: Calculate the gross profit margin?

A: Step 1: Define Gross Profit MarginThe gross profit of a company can be calculated in terms of ratio…

Q: Calculate operating cash flow accounting questions

A: Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) is the cash generated from…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Degree of Operating LeverageDegree of operating leverage (DOL) measures how…

Q: General accounting

A: Step 1: Define Income StatementThe income statement is the financial statement in which the revenues…

Q: Assume the company uses variable costing. Determine its product cost per unit.

A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…

Q: Delta corporation issued

A: Detailed Explanation: Solution Key Information: Number of shares issued: 25,000 sharesPar value per…

Q: 1. Net Income $15,300 2. Depreciation Expense 14,000

A: Explanation of Net Cash Provided or Used by Operating Activities:Net cash provided or used by…

Q: A manufacturing company produces 1,000 units at a total cost of $20,000, where $5,000 is fixed…

A: Concept of Fixed Costs:Fixed costs are expenses that do not change with the level of production or…

Q: Calculate dynamic's net income for the year?

A: Step 1: Define Net IncomeThe net income is the surplus of revenue over the expenses incurred during…

Q: Please provide this question solution general accounting

A: Step 1: Formula for net income with an increase Step 2: Substitute the given values Step 3: Perform…

Q: How long will it take for the population to double on these financial accounting question?

A: For this question we are asked to determine the number of years until the present value will double…

Q: Do fast answer of this general accounting question

A: Explanation: In the given case, we are required to calculate the amount of manufacturing overhead…

Q: A firm operated at 90% capacity for the past year, during which fixed costs were $320,000, variable…

A: Step 1: Introduction to income statementIncome statement is referred to as the financial statement…

Q: Hello teacher please solve this question

A: Step 1: Define Accounts ReceivableAccount receivable indicates the payment that the company will…

Q: answer this accounting question asap

A: Explanation of Cash Flow: Cash flow represents the movement of money into and out of a business…

Q: Krammer Company has liabilities equal to one-fourth of the total assets. Krammer's stockholders'…

A: The accounting equation states: Assets=Liabilities+Stockholders' Equity Step 1: Represent…

Q: If a company has sales revenue of $120,000, cost of goods sold of $70,000, and operating expenses of…

A: Step 1: Introduction to income statementIncome statement is referred to as the financial statement…

Q: 1. Beginning Inventory = $53,000 2. Ending Inventory = $29,000

A: Explanation of Beginning Inventory: This represents the value of merchandise on hand at the start of…

Q: None

A: To calculate the accrued interest on the U.S. Treasury note, we need to follow these steps:Step 1:…

Q: What is it's level of inventory on this accounting question?

A: Step 1: Information givenCurrent assets = $15,500,000Current liabilities = $7,200,000Quick ratio =…

Q: Badger size Company has the following information for its Forming Department for the month of…

A: Step 1: Key DataWork in Process (WIP) Inventory - August 1:Units: 20,000Materials: 100%…

Q: ? Answer me

A: To solve the problem, we need to evaluate whether spending an additional $225,000 on advertising…

Q: Solution to below Problem

A: Explanation of Gross Profit Method: The gross profit method is an inventory estimation technique…

Q: What is the accrued on the $100,000 face amount of this note ?

A: To calculate the accrued interest on the U.S. Treasury note, we need to follow these steps:Step 1:…

Q: Don't use AI

A: Explanation of Sales: Sales represents the total revenue generated from selling goods or services…

Q: What amount of net income or net loss would the company report for 2015? General accounting

A: Step 1: Given informationBeginning Stockholders' Equity: $685,000Dividends Paid: $35,000Ending…

Q: Need help with this general accounting question

A: Detailed explanation:Given:Projected Benefit Obligation $ 551,500Plan Assets $ 313,400Prior Service…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Operating Leverage and its Impact on Net IncomeOperating leverage measures how…

Q: I need this question answer general Accounting

A: Step 1: Define Interest on Note PayableInterest on note payable is calculated using simple interest…

Q: Vanessa owns a horse ranch. Her total costs are $550,000 per year, and her fixed costs are $205,000…

A: Step 1: Information providedTotal Costs = $550,000 per yearFixed Costs = $205,000 per yearStep 2:…

Q: John Joos is the owner and operator of You're A Star, a motivational consulting business. At the end…

A: We will use the accounting equation to determine the required amounts:…

Q: Need answer the financial accounting question

A: To calculate the amount of investment , we can use the formula for compound interest:A = P (1 +…

Q: What was the interest revenue that techprime earned in this period??

A: To determine the interest revenue that TechPrime earned for the year ended December 31, 2019, we…

Q: The amount of Cash?

A: Explanation of Accounts Receivable: This represents the money owed to a business by its customers…

Q: What is it's cash coverage ratio of this financial accounting question?

A: Step 1: Define Coverage RatiosCoverage ratios, as the name suggests, assess the potential of a…

Q: Cool waters total liabilities are?

A: Explanation of Assets:Assets are resources owned by a company that have economic value and are…

Q: General Accounting

A: Since NoGrowth Corporation pays a constant dividend forever, we can use the Gordon Growth Model…

Q: NDB Company has a factory with fixed costs of $650,000 and a production capacity of 225,000 units…

A: 1. Determine the required total contribution margin:Total Contribution Margin Required = Fixed Costs…

Q: A factory has direct labor costs of $51,000 and direct material costs of $33,000. If the factorys…

A: Concept of Direct Labor Costs: Direct labor costs are the wages paid to workers who are directly…

Q: Financial Accounts

A: Explanation of Cost: This represents the amount of money spent by a business to acquire or produce…

Q: What is the payback period? General accounting

Q: Hi teacher please help me this question

A: Face Value: $500,000Issued at 96%Proceeds from Issue of Bonds = Face Value x 96% = $500,000 x 96% =…

Q: Need help with this accounting questions

A: Step 1: Definition of MarginThe margin is a profitability metric that measures the percentage of…

Question

Determine the Return on Total Assets on these general accounting question

EverGreen Inc. reports the following income statement and
balance sheet information for the current year:
•
Net Income: $280,000
•
Interest Expense: $50,000
Average Total Assets: $3,400,000
Determine the Return on Total Assets (ROTA).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

From the following information for BlueInks Corporation, compute the rate of return on assets. Hint: The numerator is income before interest expense and taxes. Net income $40,878 Total assets at beginning of year $250,100 Total assets at end of year $158,680 a. 15% b. 25% c. 16% d. 20%
General Accounting
.
A company reports the following income statement and balance sheet information for the current year: Net income $435,590 Interest expense 76,870 Average total assets 4,380,000 Determine the return on total assets. If required, round the answer to one decimal place. %
A company reports the following income statement and balance sheet information for the current year: Line Item Description Amount Net income $390,000 Interest expense 60,000 Average total assets 4,500,000 Determine the return on total assets.
The following information is available from the annualreport of Frixell, Inc.: Currentliabilities . . . . $300,000Operatingincome . . . . . 240,000Net income . . . . 80,000 Currentassets . . . . $ 480,000Average totalassets . . . . 2,000,000Average totalequity . . . . 800,000Which of the following statements are correct? (More thanone statement may be correct.)a. The return on equity exceeds the return on assets.b. The current ratio is 0.625 to 1.
Selected income statement and balance sheet data from Merck & Co. for Year 9 are reproduced below: MERCK & COMPANY, INC. Year 9 Selected Financial Data ($ millions) Merck & Co. Income Statement Data Sales revenue... Depreciation...... Interest expense. $7,120 230 10 Pretax income... 2,550 Income taxes.. 900 Net income. 1,650 Balance Sheet Data Current assets... $4,850 Fixed assets, net... 2,400 Total assets.. 7,250 Current liabilities... 3,290 Long-term debt... 100 Shareholders' equity... 3,860 Total liabilities & shareholders' equity.. Required: a. Calculate return on common equity for Year 9 using year-end amounts and assuming no preferred dividends. b. Disaggregate Merck's ROCE. Comment on Merck's use of leverage. (Assume all assets and current liabilities are operating and a 35% tax rate.). c. Disaggregate ROA and comment on that.
Please Help
The following information is from Lacy's Inc. $ millions Prior Fiscal Year Current Fiscal Year Net Year-End Assets Revenue Income $21,330 14,403 $18,955 $1,070 a. Compute the asset turnover ratio for the current fiscal year. b. Compute the return on assets ratio for the current fiscal year. Numerator a. Asset Turnover Ratio $ Check b. Return on Assets Ratio $ Numerator Denominator / $ Denominator / $ || Result Result
A company reports the following income statement and balance sheet information for the current year: Net income $132,370 Interest expense 11,510 Average total assets 2,180,000 Determine the return on total assets. Round the percentage to one decimal place.fill in the blank %
6 )
sanju