None Sunset Cruises reports net income of $225,000, average totalassets of $1,200,000, and average total liabilities of$525,000. Calculate Sunset's return on assets and return onequity ratios.

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

Answered: Sunset Cruises reports net income of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sunset Cruises reports net income of $225,000, average total assets of $1,200,000, and average total liabilities of $525,000. Calculate Sunset's return on assets and return on equity ratios.