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Chapter 1: Q6TI. (page 25)

Using the following information, calculate the return on assets. Net income for November, 2018 $ 5,000 Total assets, November 1, 2018 76,000 Total assets, November 30, 2018 80,250

Short Answer

Expert verified

The return on assets equals 6.40%.

Step by step solution

01

Explanation on return on assets

Return on assets measures the business's profitability by utilizing its total assets.

02

Return on assets calculation

Return on asset is calculated as follows:

Thus, the return on assets is 6.40%.

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Most popular questions from this chapter

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Preparing the statement of retained earnings

Prepare the statement of retained earnings of Centerpiece Arrangements for the year ended December 31, 2018
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