Chapter 1, Problem E1.39E

Calculating Return on Assets

Learning Objective 6

Alice Appliance Service had net income for the year of $58,500. In addition, the balance sheet reports the following balances:

	Jan 1, 2018	Dec 31,2018
Notes Payable	$ 32,000	$ 58,000
Cash	34,000	134,200
Office Furniture	23,000	44,000
Building	160,000	160,000
Accounts Payable	11,500	11,000
Total Owner's Equity	204,500	333,000
Accounts Receivable	2,200	19,800
Equipment	24,000	42,000
Office Supplies	4,800	2,000

Calculate the return on assets for Alice Appliance Service for the year ending December 31,2018.