Gerick Electronics Inc. reported the following income statement details: Item Sales (all on account) Amount $450,000 Cost of Goods Sold $200,000 Gross Margin $250,000 Selling & Administrative Expense $85,000 Net Operating Income $165,000 Interest Expense $15,000 Net Income Before Taxes $150,000 $37,500 $112,500 Income Taxes (25%) Net Income The beginning balance of total assets was $400,000, and the ending balance was $360,000. Compute the Return on Total Assets (ROA).

Gerick Electronics Inc. reported the following income statement details: Item Sales (all on account) Amount $450,000 Cost of Goods Sold $200,000 Gross Margin $250,000 Selling & Administrative Expense $85,000 Net Operating Income $165,000 Interest Expense $15,000 Net Income Before Taxes $150,000 $37,500 $112,500 Income Taxes (25%) Net Income The beginning balance of total assets was $400,000, and the ending balance was $360,000. Compute the Return on Total Assets (ROA).

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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Sub. GENERAL ACCOUNT
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