What is this companys return on assets for 2017 Income State

What is this company\'s return on assets for 2017?

Income Statement ($000s)                                         Balance Sheet ($000s)

                                          2017      2016                                                                        2017   2016

Revenues                         $ 200     $175                     Cash                                          $   10 $150

Cost of Goods Sold              110        100                    Accounts Receivable                       30        40

Operating Expenses              30         28                     Inventory                                      20    40

Interest Expense                20         12                     Plant, Property, Equipment            180       200

Net Income                           40         35                     Total Assets                                $ 240     $430

                    Accounts Payable                         $   15 $ 25

                                                                                  Bank Debt Due in 6 Months       15   50

                                                                                Long term Debt                            80      245

                                                                                Common Stock                                60      60

                                                                                Retained Earnings                         70       50

                                                                                  Total Liabilities & Equity          $ 240    $430

The company has 1,000,000 shares of common stock authorized, 500,000 shares issued, and 200,000 outstanding as of both 12/31/2017 and 12/31/2016.

Solution

Net Income for the year 2017 40 Average assets Beginning total assets 430 Ending Total assets 240 Average assets (430+240)/2 335 Return on Assets: Net income / Average assets *100 $ 40 / 335 *100 = 11.94% Hence, Return on assets for 2017: 11.94%