Question

Alma Appliance Service had net income for the year of $36,000. In addition, the balance sheet reports the following balances: m (Click the icon to view the balances.) Calculate the return on assets (ROA) for Alma Appliance Service the year ending December 31, 2018. Data Table Net Income Average total assets ROA 1 1 Notes Payable Cash Ofice Furniture Building Accounts Payable Total Stockholders' Equity Accounts Receivable Equipment Orice Supplies Jan 1, 2018 Dec 31, 2018 $ 44,000 $ 70.000 35.000 203.400 20,000 38.000 170,000 170,000 10,000 9.500 190.200 390,300 3.200 16,800 16,000 40.000 5.000 1.600 Print Done

Answer 1

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A B D E 1 2 Jan. 1, 2018 2 3 203400 38000 4 Total Assets Cash Office Furniture Building Accounts receivable Equipment Office supplies Total Assets Dec. 31, 2018 36000 20000 170000 3200 16000 5 6 170000 16800 400001 7 8 5000 1600 9 250200 469800 Average total assets= (Opening total assets +Closing total assets)/2 Average total assets= 360000 9999 Return on total assets Net Income / Average total assets Net Income 36000 Return on total assets 36000/360000 10% Return on total assets 10% 21

For calculation ref:

A B C D 1 N 3 3 4 5 6 7 Total Assets Cash Office Furniture Building Accounts receivable Equipment Office supplies Total Assets Jan. 1, 2018 36000 20000 170000 3200 16000 5000 I-SUM(C3:08) Dec. 31, 2018 203400 38000 170000 16800 40000 1600 =SUM(D3:08) 8 9 10 11 Average total assets= (Opening total assets +Closing total assets)/2 Average total assets= =(C9+D9)/2 12 13 14 Return on total assets Net Income / Average total assets Net Income 36000 Return on total assets 36000/360000 =36000/360000 2999 ÀS Return on total assets =36000/360000 23