I got the net income from the income statement. For the average current assets, do I need a value from the previous year to get the average or can I just use the total asset value from that balance sheet? Requirement 7. Calculate the following ratios as of January 31, 2025 for Milton Delivery Service: return on assets, debt ratio, and current ratio.First, select the labels then enter the amounts and compute the return on assets (ROA). (Use parentheses or a minus sign for a loss and/or negative ROA. Round the percentage to the nearest tenthpercent, X.X%.)Net income (loss)1490Average total assets56490ROA% Current Assets:CashAccounts ReceivableOffice SuppliesPrepaid InsuranceTotal Current AssetsProperty, Plant, and Equipment:TruckMilton Delivery ServiceBalance SheetJanuary 31, 2025AssetsLess: Accumulated Depreciation-TruckTotal Property, Plant, and EquipmentTotal AssetsLiabilities$34,8005,860801,05015,000(300)$41,79014,70056,490

Return on Assets: Return on assets (ROA), which is often referred to as return on total assets, is a…

Answered: Requirement 7. Calculate the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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I got the net income from the income statement. For the average current assets, do I need a value from the previous year to get the average or can I just use the total asset value from that balance sheet?

Requirement 7. Calculate the following ratios as of January 31, 2025 for Milton Delivery Service: return on assets, debt ratio, and current ratio.
First, select the labels then enter the amounts and compute the return on assets (ROA). (Use parentheses or a minus sign for a loss and/or negative ROA. Round the percentage to the nearest tenth
percent, X.X%.)
Net income (loss)
1490
Average total assets
56490
ROA
%

Current Assets:
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Total Current Assets
Property, Plant, and Equipment:
Truck
Milton Delivery Service
Balance Sheet
January 31, 2025
Assets
Less: Accumulated Depreciation-Truck
Total Property, Plant, and Equipment
Total Assets
Liabilities
$
34,800
5,860
80
1,050
15,000
(300)
$
41,790
14,700
56,490

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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