Bountiful Water Services had net income for the month of October of $ 40 comma 400. Assets as of the beginning and end of the month totaled $ 346 comma 000 , and $ 462 comma 000 , respectively. Calculate Bountiful Water Services' ROA for the month of October

The ROA for the month of October was 10%

Explanation:

Return over Assets: It represent the yield of the company base on the resources it has during the period.

Return Over Assets = Net income / average Assets

were average assets = (beginning + ending) / 2

Net income $40,400

Beginning Assets $346,000

Ending Assets $462,000

Average Assets $404,000

ROA = 40,400/404,000 = 10%