This Question 5 pts 19 Using the following information calcu

This Question: 5 pts 19. Using the following information, calculate the return on assets (ROA). Net income for November, 2016 Total assets, November 1, 2016 Total assets, November 30, 2016 15,300 50,000 130,000 Identify the formula and then solve for return on assets (ROA). (Round the ROA to the nearest tenth percent, X Net i Average total assets ROA 15300 130000-1 12 | %

Solution

Return on Assets = Net income ÷ (average assets)

Net income = 15,300

Average assets = (opening assets + closing assets)/2

So.. Average assets = (50,000+1,30,000)/2 = 90,000

Return on Assets = 15,300/90,000 = 0.17 = 17%

Therfore ROA = 17%