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20 March, 08:00

In 2016, Bubble Inc. had net income of $500,000, assets of $5,000,000, sales of $2,000,000, and debt of 2,000,000. In 2017, Bubble Inc. had net income of $600,000, assets of $7,000,000, sales of $1,300,000, and debt of 2,000,000. Did Bubble Inc's return on assets improve from 2016 to 2017?

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  1. 20 March, 09:00
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    No

    Explanation:

    The computation of the return of assets is calculated by applying the formula which is shown below:

    Return on assets = Net income : assets

    In 2016, the return on assets would be equal to

    = $500,000 : $5,000,000

    = 0.1

    In 2017, the return on assets would be equal to

    = $600,000 : $7,000,000

    = 0.085

    By comparing the return on assets for both the years, we get to know that the return on assets is declining from 2016 to 2017
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Home » Business » In 2016, Bubble Inc. had net income of $500,000, assets of $5,000,000, sales of $2,000,000, and debt of 2,000,000. In 2017, Bubble Inc. had net income of $600,000, assets of $7,000,000, sales of $1,300,000, and debt of 2,000,000.
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