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In January 2007, the Status Quo Company was formed. Total assets were $502,000, of which $354,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $35,400 per year, and in 2007 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $44,000 per year for each of the last 10 years. Other assets have not changed since 2007.   a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $44,000 in the numerator for each year.) (Input your answers as a percent rounded to 2 decimal places.)

In January 2007, the Status Quo Company was formed. Total assets were $502,000, of which $354,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $35,400 per year, and in 2007 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $44,000 per year for each of the last 10 years. Other assets have not changed since 2007.   a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $44,000 in the numerator for each year.) (Input your answers as a percent rounded to 2 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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In January 2007, the Status Quo Company was formed. Total assets were $502,000, of which $354,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $35,400 per year, and in 2007 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $44,000 per year for each of the last 10 years. Other assets have not changed since 2007.
 

a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $44,000 in the numerator for each year.) (Input your answers as a percent rounded to 2 decimal places.)
  

 
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