Return on Total AssetsA company reports the following income statement and balance sheet information for the current year:Net income$157,080Interest expense27,720Average total assets2,800,000Determine the return on total assets? If required, round the answer to one decimal place.

Name: Return on Total AssetsA company reports the following income statement
Uploaded: 2022-11-23T13:49:46.000Z
Channel: Bartleby
Description: Return on Total AssetsA company reports the following income statement and balance sheet information for the current year:Net income$157,080Interest expense27,720Average total assets2,800,000Determine the return on total assets? If required, round th

Answered: Return on Total Assets A company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Practice Pack

Return on Total Assets

A company reports the following income statement and balance sheet information for the current year:

Net income	$157,080
Interest expense	27,720
Average total assets	2,800,000

Determine the return on total assets? If required, round the answer to one decimal place.

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.

Expert Solution

Step 1

Return on total assets is a form of profitability ratio which shows how much net income or earnings are getting generated on assets invested in the business.

Return on Total Assets = Net Income/Average Total Assets.

Better your learning with

Practice Pack

Better your learning with

Practice Pack