Chapter 1, Problem 10AP

Determining expenses, liabilities. equity, and return on assets

Kyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is $250,000. In its most recent year, Kvzera reported net income of $65,000 on revenues of $475,000.

Required

1. 1. What is Kyzera’s return on assets?
2. 2. Does return on assets seem satisfactory for Kyzera given that its competitors average a 12% return on assets?
3. 3. What are total expenses for Kyzera in its most recent year?

  Chexk (3) $410,000

1. 4. What is the average total amount of liabilities plus equity for Kyzera?

  (4) $250,000