A firm has current assets of $36,000, cash of $5,000, current liabilities of $20,000, total assets of $80,000 and total liabilit
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Answer:
return on assets = 20%
Explanation:
given data
net income = $900
beginning total assets = $4600
ending total assets = $4400
solution
we get here return on assets that is express as
return on assets = × 100 ............1
here average assets will be
average assets =
average assets = $4500
put here value we get
return on assets = × 100
return on assets = 20%