Question

Assume Global Cleaning Service had net income of $ 570 for the year. Global Cleaning​ Service's beginning and ending total assets were $ 4 comma 520 and $ 4 comma 180​, respectively. Calculate Global Cleaning​ Service's return on assets​ (ROA).a. 12.6%b. 13.6%c. 13.1%d. 7.63%

Answer 1

Answer:

c. 13.1%

Explanation:

Return on assets is a financial measure that gives insight to the amount of income earned for $1 of the company's investments in asset. It is given as the ratio of net income to average total asset.

Given;

Beginning total asset = $4,520

Ending total asset =$4,180

Average total asset = ($4,520 +$4,180)/2

                                 = $4,350

Net Income = $570

Return on asset = $570/$4350

                          = 13.1%

Option c. 13.1%