Skip to main content

Business Accounting Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

Return on assets (ROA) of the company for the respective period. Introduction: The financial statements of a company include the balance sheet , income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Return on assets can be computed as: ROA = Net income Average assets Further, it can be stated as: ROA = Net income Beginning assets + Ending assets 2 Substituting the values, ROA = $58,500 $248,000 + $402,000 2 ROA = $58,500 $650,000 2 ROA = $58,500 $ 325 , 000 ROA = 0 .18 or 18% Wherein, the value of assets has been computed below: Particulars $ (Jan 1, 2024) $ (Dec 31, 2024) Assets: Cash 34,000 134,200 Office furniture 23,000 44,000 Building 160,000 160,000 Accounts receivable 2,200 19,800 Equipment 24,000 42,000 Office supplies 4,800 2,000 Total assets 248,000 402,000

Return on assets (ROA) of the company for the respective period. Introduction: The financial statements of a company include the balance sheet , income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Return on assets can be computed as: ROA = Net income Average assets Further, it can be stated as: ROA = Net income Beginning assets + Ending assets 2 Substituting the values, ROA = $58,500 $248,000 + $402,000 2 ROA = $58,500 $650,000 2 ROA = $58,500 $ 325 , 000 ROA = 0 .18 or 18% Wherein, the value of assets has been computed below: Particulars $ (Jan 1, 2024) $ (Dec 31, 2024) Assets: Cash 34,000 134,200 Office furniture 23,000 44,000 Building 160,000 160,000 Accounts receivable 2,200 19,800 Equipment 24,000 42,000 Office supplies 4,800 2,000 Total assets 248,000 402,000

Solution Summary: The author explains that the financial statements of a company include the balance sheet, income statement, and cash flow statement.

Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

7th Edition

ISBN: 9780136714194

Author: Tracie Miller-Nobles, Brenda Mattison

Publisher: PEARSON+

See similar textbooks

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

Blurred answer

Chapter 1, Problem 1.38E

Chapter 1, Problem 1.40E

Students have asked these similar questions

Help me Accounting

Please provide the accurate answer to this general accounting problem using appropriate methods.

Please explain the solution to this general accounting problem with accurate explanations.

Chapter 1 Solutions

Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

Ch. 1 - Prob. 1QC Ch. 1 - Prob. 2QC Ch. 1 - Prob. 3QC Ch. 1 - Prob. 4QC Ch. 1 - Prob. 5QC Ch. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the a. financial...

Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQ Ch. 1 - Prob. 3RQ Ch. 1 - Prob. 4RQ Ch. 1 - Prob. 5RQ Ch. 1 - Prob. 6RQ Ch. 1 - Prob. 7RQ Ch. 1 - Prob. 8RQ Ch. 1 - Prob. 9RQ Ch. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQ Ch. 1 - Prob. 13RQ Ch. 1 - Prob. 14RQ Ch. 1 - Prob. 15RQ Ch. 1 - Prob. 16RQ Ch. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for return on assets...Ch. 1 - Identifying users of accounting information For...Ch. 1 - Prob. 1.2SE Ch. 1 - Prob. 1.3SE Ch. 1 - Prob. 1.4SE Ch. 1 - Applying accounting assumptions and principles...Ch. 1 - Prob. 1.6SE Ch. 1 - Prob. 1.7SE Ch. 1 - Identifying accounts Consider the following...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Prob. 1.11SE Ch. 1 - Prob. 1.12SE Ch. 1 - Prob. 1.13SE Ch. 1 - Prob. 1.14SE Ch. 1 - Prob. 1.15SE Ch. 1 - Prob. 1.16SE Ch. 1 - Prob. 1.17E Ch. 1 - Prob. 1.18E Ch. 1 - Prob. 1.19E Ch. 1 - Prob. 1.20E Ch. 1 - Prob. 1.21E Ch. 1 - Prob. 1.22E Ch. 1 - Prob. 1.23E Ch. 1 - Prob. 1.24E Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Prob. 1.28E Ch. 1 - Prob. 1.29E Ch. 1 - Prob. 1.30E Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Prob. 1.33E Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Preparing the statement of cash flows For each...Ch. 1 - Prob. 1.38E Ch. 1 - Prob. 1.39E Ch. 1 - Prob. 1.40E Ch. 1 - Prob. 1.41AP Ch. 1 - Prob. 1.42AP Ch. 1 - Prob. 1.43AP Ch. 1 - Prob. 1.44AP Ch. 1 - Prob. 1.45AP Ch. 1 - Prob. 1.46AP Ch. 1 - Prob. 1.47AP Ch. 1 - Prob. 1.48BP Ch. 1 - Prob. 1.49BP Ch. 1 - Prob. 1.50BP Ch. 1 - Prob. 1.51BP Ch. 1 - Prob. 1.52BP Ch. 1 - Prob. 1.53BP Ch. 1 - Prob. 1.54BP Ch. 1 - Prob. 1.55CP Ch. 1 - Lets examine a case using Gregs Tunes and Sals...Ch. 1 - The tobacco companies have paid billions because...Ch. 1 - Prob. 1.1CTFC

Knowledge Booster

Background pattern image

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning

Text book image

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:Cengage Learning

Text book image

Cornerstones of Financial Accounting

Accounting

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Cengage Learning

SEE MORE TEXTBOOKS