S15-7 Computing rate of return on total assetsGodhi's 2014 financial statements reported the following items-with 2013 figuresgiven for comparison:LearningGODHI, INC.Balance SheetAs of December 31, 2014 and 201320142013$ 33,538$ 29,562Total Assets17,10014,962Total LiabilitiesTotal Stockholders' Equity (all common)16,43814,600$ 33,538$ 29,562Total Liabilities and Stockholders' EquityNet income for 2014 was $3,890 and interest expense was $210. Compute Godhi'srate of return on total assets for 2014. (Round to the nearest percent.)

Average Total assets = (Beginning Total assets + Ending Total assets)/2 =(33538+29562)/2 = $31,550

Godhi's 2014 financial statements reported the following items-with 2013 figures given for comparison: GODHI, INC. Balance Sheet As of December 31, 2014 and 2013 2014 2013 $ 33,538 $ 29,562 Total Assets 17,100 14,962 Total Liabilities 16,438 14,600 Total Stockholders' Equity (all common) $ 33,538 $ 29,562 Total Liabilities and Stockholders' Equity Net income for 2014 was $3,890 and interest expense was $210. Compute Godhi's rate of return on total assets for 2014. (Round to the nearest percent.)

Godhi's 2014 financial statements reported the following items-with 2013 figures given for comparison: GODHI, INC. Balance Sheet As of December 31, 2014 and 2013 2014 2013 $ 33,538 $ 29,562 Total Assets 17,100 14,962 Total Liabilities 16,438 14,600 Total Stockholders' Equity (all common) $ 33,538 $ 29,562 Total Liabilities and Stockholders' Equity Net income for 2014 was $3,890 and interest expense was $210. Compute Godhi's rate of return on total assets for 2014. (Round to the nearest percent.)

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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