Ask Question
BusinessBusiness
11 May, 05:20

Net income was $450,000. Beginning and ending stockholders' equity was $4,000,000 and $4,800,000, respectively. Beginning total assets = $6,000,000 and ending total assets = $6,600,000. What was the return on assets (ROA) ?

A. 6.188%

B. 7.143%

C. 7.5%

D. 10.227%

+4
Answers (1)
  1. 11 May, 06:50
    0
    The correct answer is B. 7.143 %.

    Explanation:

    Return on assets is a profitability ratio that provides how much profit a company is able to generate from its assets. In other words, return on assets (ROA) measures how efficient a company's management is in generating earnings from their economic resources or assets on their balance sheet. ROA is shown as a percentage, and the higher the number, the more efficient a company's management is at managing its balance sheet to generate income.

    The formula to calculate it is given below.

    ROA = Net Income/Average total asset * 100

    = 450,000 / 6,300,000*

    = 7.14 %

    * = (6,000,000 + 6,300,000) / 2
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Net income was $450,000. Beginning and ending stockholders' equity was $4,000,000 and $4,800,000, respectively. Beginning total assets = ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Any group within or outside the organization that has an interest in the organization's performance is called
Answers (1)
Tungsten, Inc. manufactures both normal and premium tube lights. The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base. Estimated overhead costs for the year are $ 104 comma 000.
Answers (1)
As you may know, Starbucks is in a battle with McDonald's to capture the early morning coffee customer. Last month, our location sold 180 lattes per day, while the McDonald's down the street sold 220. We need to beat McDonald's next month
Answers (1)
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $244,200 and 9,200 estimated direct
Answers (1)
A U. S. mutual fund buys stocks issued by a Columbian company. This purchase is an example of a. U. S. foreign direct investment. It increases Columbia's net capital outflow. b. U. S. foreign portfolio investment.
Answers (1)
New Questions in Business
Complete the recursive formula of the geometric sequence 500, 200, 80, 32 ...
Answers (1)
Why would an advertiser use a mixed-media approach? It is less expensive than a homogeneous media mix It gives more exposure than a heterogeneous media plan It is easier to schedule than any other type of media mix It produces an effect where the
Answers (1)
Select the answer that best decribes what an opportunity cost is
Answers (1)
Suppose the U. S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to $5,000 for the old automobiles.
Answers (1)
What are the principal accounting reports involved in the financial reporting process? in general terms, what is the purpose of these reports?
Answers (1)
Home » Business » Net income was $450,000. Beginning and ending stockholders' equity was $4,000,000 and $4,800,000, respectively. Beginning total assets = $6,000,000 and ending total assets = $6,600,000. What was the return on assets (ROA) ? A. 6.188% B. 7.143% C. 7.
Sign Up Forgot Password?