
Concept introduction:
Return on Assets:
Return on Assets (ROA) is the earnings generated by the business/management on the investment or assets /invested into a business. It indicates the efficiency of the business/ management by calculating the percentage of return, the business/management gives on the investment made. The calculation is done by dividing a company's annual earning by its total assets. The return on assets is also known as
(1) To determine:
For Coca-cola and Pepsico, calculate the return on assets.
Answer:
Computation of return on assets:Formula:
(2) To write:
Compare the sales of the two companies and find which company is more successful

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Chapter 1 Solutions
Fundamental Accounting Principles
- March, April, and May sales are $80,000, $95,000, and $110,000, respectively. 15% of sales are collected in the month of sale; 60% are collected in the month following sale, and the remaining 25% are collected in the second month following sale. What is the amount of cash collections in May? Show steps used in solving the problem. A. $118,500 B. $25,000 C. $93,500 D. $115,000arrow_forwardPlease explain the solution to this general accounting problem with accurate explanations.arrow_forwardI am looking for help with this general accounting question using proper accounting standards.arrow_forward
- Montclair Industries had $720,000 in invested assets, sales of $810,000, income from operations amounting to $113,400, and a desired rate of return of 16%. What is the profit margin?arrow_forwardCan you solve this general accounting question with accurate accounting calculations?arrow_forwardI need help finding the accurate solution to this general accounting problem with valid methods.arrow_forward
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