Year 1 Year 2 Total assets $90,000 $98,000 Total liabilities $30,000 $40,000 Interest $11,000 $13,000 Net income $32,000 $25,000 Use the information above. Calculate the net return on assets (ROA) for Year 1, to the nearest tenth
Added by Khristine Jhoy S.
Step 1
To do this, we add the total assets for both years and divide by 2: Average total assets = (Total assets Year 1 + Total assets Year 2) / 2 Average total assets = ($90,000 + $98,000) / 2 Average total assets = $188,000 / 2 Average total assets = $94,000 Show more…
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