Gamma Enterprises manufactures electronic equipment. The company's most recent income statement appears below: Sales (all on account) Cost of goods sold Gross margin $350,000 $170,000 $180,000 Selling and administrative expense $72,000 Net operating income Net income before taxes Income taxes (30%) Net income $108,000 $94,500 $28,900 $55,600 The beginning balance of total assets was $350,000, and the ending balance was $310,000. Compute the return on total assets.

Gamma Enterprises manufactures electronic equipment. The company's most recent income statement appears below: Sales (all on account) Cost of goods sold Gross margin $350,000 $170,000 $180,000 Selling and administrative expense $72,000 Net operating income Net income before taxes Income taxes (30%) Net income $108,000 $94,500 $28,900 $55,600 The beginning balance of total assets was $350,000, and the ending balance was $310,000. Compute the return on total assets.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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