Swiss Group reports net income of $26,000 for 2017. At the beginning of 2017, Swiss Group had $184,000 in assets. By the end of

Question

3 years ago

9

2017, assets had grown to $234,000. What is Swiss Group's 2017 return on assets?

1 answer:

Sphinxa [80] · Answer 1 · 2022-04-10T00:34:27+03:00

Answer:

12.44%

Explanation:

The computation of the return on assets is shown below:

As we know that

Return on asset = Net income ÷ Average of total asset

= ($26,000) ÷ ($184,000 + $234,000) ÷ 2

= ($26,000) ÷ ($209,000)

= 12.44%

We simply applied the above formula so that the return on assets could be determined

Therefore we considered all the information given in the question