If a company's net income for the year is $100,000 and its total assets at the beginning of the year were $500,000, while its total assets at the end of the year were $600,000, what is the company's return on assets (ROA)?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9BE
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If a company's net income for the year is $100,000 and
its total assets at the beginning of the year were
$500,000, while its total assets at the end of the year were
$600,000, what is the company's return on assets
(ROA)?
Transcribed Image Text:If a company's net income for the year is $100,000 and its total assets at the beginning of the year were $500,000, while its total assets at the end of the year were $600,000, what is the company's return on assets (ROA)?
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