Question

Please fill in the two blanks for requirement #5.

Wonder Wilderness Company is a service-based company that rents canoes for use on local lakes and rivers. Ashley and Zain Waldon gra years ago. They both worked for one of the "Big Four" accounting firms and became CPAS. Because they both love the outdoors, they dec that will combine their love of outdoor activities with their business knowledge. Ashley and Zain decide that they will create a new corporati Company, or WWC for short. The business began operations on November 1, 2018. 6 (Click the icon to view the transactions.) Read the requirements. November 30, 2018 Assets Liabilities 17,600 Accounts Payable 3,300 Cash 2,500 Utilities Payable Accounts Receivable 200 130 Office Supplies 800 Telephone Payable 3,630 Canoes 4,900 Total Liabilities Stockholders' Equity Common Stock 20,000 2,170 Retained Earnings 22,170 Total Stockholders' Equity 24 25,800 25,800 Total Assets Total Liabilities and Stockholders' Equity Requirement 5. Calculate the return on assets for Wonder Wilderness Company for November 2018. (Round the ROA to the nearest tent Average total assets Net income ROA %2$ 2,470 Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

Average total assets = total assets at beginning + total assets at end / 2

In this problem since data of previous year is not given , average total assets = total assets at the year end.

Total assets = cash + AR + office supplies + canoes = $25800

ROI = net income / average total assets

= 2470/25800 = 0.0957 or 9.57%