Question

Please complete requirment 5

Wonder Wilderness Company is a service based company that rents canoes for use on local lakes and rivers. Ashley and Zain Waldon graduated from business that will combine their love of outdoor activities with their business knowledge. Ashley and Zain decide that they will create a new corporation (Click the icon to view the transactions.) Read the requirements Net income for the month 2,470 Dividends 2.470 (300) 2,170 Retained Earnings, November 30, 2018 130 Requirement 4. Prepare the balance sheet as of November 30, 2018. (If a box is not used in the statement, leave the box emply do not select a label of Review the ending balances of the accounts from Requirement 1. Wonder Wilderness Company Balance Sheet November 30, 2018 Assets Liabilities Cash $ 17.600 Accounts Payable 3,300 Accounts Receivable 2.500 Utilities Payable 200 Office Supplies 800 Telephone Payable Canoes 4.900 Total Liabilities 3.630 Stockholders' Equity Common Stock 20,000 Retained Earnings 2,170 Total Stockholders' Equity 22 170 23,600 Total Liabilities and Stockholders' Equity 25,800 Requirement 5. Calculate the return on assets for Wonder Wilderness Company for November 2018. (Round the RCA to the nearest tenth percent. XX% ROA Total Assets

Answer 1

Return on Assets = Net Income / Total Assets
Return on Assets = $2,470 / $25,800
Return on Assets = 0.098 or 9.8%