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13 May, 06:25

The following amounts were taken from the financial statements of Vaughn Company: 2017 2016 Total assets $770000 $810000 Net sales 740000 650000 Gross profit 355000 320000 Net income 117710 116000 Weighted average number of common shares outstanding 99000 99000 Market price of common stock $36 $42 The return on assets for 2017 is

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  1. 13 May, 06:34
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    Return on assets for 2017

    = Net income x 100

    Total assets

    = $117,710 x 100

    $770,000

    = 15.29%

    Explanation:

    Return on assets is the ratio of net income to total assets multiplied by 100.
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