The net income for a company is $210,000 for the year ended December 31, 2020. The total assets of the company are $800,000 on January 1, 2020. The ending total assets are $950,000 on December 31, 2020. Given this information, what is the return on assets for this company and a possible interpretation? C The company earned 12 cents for each dollar invested in assets. The company earned 24 cents for each dollar invested in assets. The company earned a 22.11% return on its investment in assets. The company earned a 417.7% return on its investment in assets. The company earned a 26.25% return on its investment in assets.
The net income for a company is $210,000 for the year ended December 31, 2020. The total assets of the company are $800,000 on January 1, 2020. The ending total assets are $950,000 on December 31, 2020. Given this information, what is the return on assets for this company and a possible interpretation? C The company earned 12 cents for each dollar invested in assets. The company earned 24 cents for each dollar invested in assets. The company earned a 22.11% return on its investment in assets. The company earned a 417.7% return on its investment in assets. The company earned a 26.25% return on its investment in assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hardev
Transcribed Image Text:The net income for a company is $210,000 for the year
ended December 31, 2020.
The total assets of the company are $800,000 on January
1, 2020.
The ending total assets are $950,000 on December 31,
2020.
Given this information, what is the return on assets for this
company and a possible interpretation?
C
The company earned 12 cents for each dollar invested in
assets.
The company earned 24 cents for each dollar invested in
assets.
The company earned a 22.11% return on its investment in
assets.
The company earned a 417.7% return on its investment in
assets.
The company earned a 26.25% return on its investment in
assets.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education