Question

E1-39 (similar to) Allied Appliance Service had net income for the year of $68,000. In addition, the balance sheet reports the following balances EEB (Click the icon to view the balances.) Calculate the return on assets for Allied Appliance Service for the year ending December 31, 2018 Net income Average total assets ROA i Data Table Jan 1, 2018 Dec 31, 2018 52,000 242,800 40,000 125,000 11,500 411,100 19,600 45,000 2,200 36,000 $ Notes Payable Cash Office Furniture Building Accounts Payable Total Owner's Equity Accounts Receivable Equipment Office Supplies 35,000 21,000 125,000 9,500 159,900 1,200 19,000 4,200 Choose from any list or enter an All parts showing

Answer 1

	Jan 1, 2018	Dec 31, 2018
Cash	35000	242800
Office furniture	21000	40000
Building	125000	125000
Accounts receivable	1200	19600
Equipment	19000	45000
Office supplies	4200	2200
Total assets	205400	474600
Notes payable	36000	52000
Accounts payable	9500	11500
Total owners equity	159900	411100
Total liabilities & Equity	205400	474600
ROA:
NI	68000
Average total assets = (205400+474600)/2 =	340000
ROA = 68000/340000 =	20.00%