General accounting Sunset Café reports net income of $180,000, average total assets of$800,000, and average total liabilities of $320,000. Calculate thereturn on assets and return on equity ratios.

Step 1: Definition of Return on Assets (ROA) and Return on Equity (ROE)Return on Assets (ROA): ROA…

Answered: Sunset Café reports net income of…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 6CP: The average liabilities, average stockholders' equity, and average total assets are as follows: 1....

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Sunset Café reports net income of $180,000, average total assets of $800,000, and average total liabilities of $320,000. Calculate the return on assets and return on equity ratios.