Based on the return on assets of 21%, the net income of Pacific Ocean Resort for year is $166,950
What is return on assets?
The return on assets for the company is determined as the net income divided by the average total assets of Pacific Ocean Resort , bearing in mind that the average total assets is sum of the beginning and ending assets divided by 2
return on assets=net income/average total assets
return on assets=21%
net income=unknown
average total assets=($720,000+$870,000)/2
average total assets=$795,000
21%=net income/$795,000
net income=$795,000*21%
net income=$166,950
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