Explanation • Given: Following information is available for calculation of the rate of Return on total assets for 2018 ■ Net Income for the year 2018 is $3,910 ■ Total Assets for the year 2018 is $ 32,978 ■ Total Assets for the year 2017 is $ 30,660 • Formula used: The formulas used to calculate the Return on total assets are as follows: A v e r a g e T o t a l a s s e t s = ( T o t a l A s s e t s f o r p r e v i o u s y e a r + T o t a l a s s e t s f o r c u r r e n t y e a r ) 2 R e t u r n o n T o t a l a s s e t s = N e t I n c o m e A v e r a g e t o t a l a s s e t s • Calculation: The rate of Return on total assets is calculated as follows: Calculation of average total assets: A v e r a g e T o t a l a s s e t s = ( T o t a l A s s e t s f o r p r e v i o u s y e a r + T o t a l

Horngren's Accounting, Student Value Edition (12th Edition)

12th Edition

ISBN: 9780134487151

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Question

Chapter 15, Problem S15.7SE

To determine

Return on Total Assets:

Return on total assets in the profitability ratio that measure the percentage rate of income earned on the total assets invested in the business. It is calculated by dividing the Net Income by Average total assets.

The formula to calculate the Return on total assets is as follows:

$R e t u r n o n T o t a l a s s e t s = \frac{N e t I n c o m e}{A v e r a g e t o t a l a s s e t s}$

To determine: The rate of Return on total assets for 2018

Expert Solution & Answer

Chapter 15 Solutions

Horngren's Accounting, Student Value Edition (12th Edition)

Ch. 15 - Prob. 1QC Ch. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QC Ch. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QC Ch. 15 - Prob. 6QC Ch. 15 - Prob. 7QC Ch. 15 - Prob. 8QC Ch. 15 - Prob. 9QC Ch. 15 - Prob. 10QC

Ch. 15 - Prob. 1RQ Ch. 15 - Prob. 2RQ Ch. 15 - Prob. 3RQ Ch. 15 - Prob. 4RQ Ch. 15 - Prob. 5RQ Ch. 15 - Prob. 6RQ Ch. 15 - Prob. 7RQ Ch. 15 - Prob. 8RQ Ch. 15 - Prob. 9RQ Ch. 15 - Prob. 10RQ Ch. 15 - Prob. 11RQ Ch. 15 - Prob. 12RQ Ch. 15 - Prob. 13RQ Ch. 15 - Prob. 14RQ Ch. 15 - Prob. S15.1SE Ch. 15 - Prob. S15.2SE Ch. 15 - Prob. S15.3SE Ch. 15 - Prob. S15.4SE Ch. 15 - Prob. S15.5SE Ch. 15 - Prob. S15.6SE Ch. 15 - Prob. S15.7SE Ch. 15 - Accounting for debt investments Learning Objective...Ch. 15 - Prob. E15.9E Ch. 15 - Prob. E15.10E Ch. 15 - Prob. E15.11E Ch. 15 - Accounting for equity investments Learning...Ch. 15 - Prob. E15.13E Ch. 15 - Prob. E15.14E Ch. 15 - Prob. E15.15E Ch. 15 - Prob. E15.16E Ch. 15 - Prob. E15.17E Ch. 15 - Prob. P15.18APGA Ch. 15 - Prob. P15.19APGA Ch. 15 - Prob. P15.20APGA Ch. 15 - Accounting for debt investments Learning Objective...Ch. 15 - Prob. P15.22BPGB Ch. 15 - Prob. P15.23BPGB Ch. 15 - Prob. P15.24CT Ch. 15 - Prob. 25CP Ch. 15 - Prob. 15.1TIATC Ch. 15 - Prob. 15.1DC Ch. 15 - Prob. 15.1EI Ch. 15 - Prob. 15.1FC Ch. 15 - Prob. 15.1FSC

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