Ochoa Optical, Inc., provides a full line of designer eyewear to optical dispensaries. Ochoa reported the following

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Ochoa Optical, Inc., provides a full line of designer eyewear to optical dispensaries. Ochoa reported the following information for 2016 and 2017:

__________________________________________________________ 2017 ______________ 2016

Sales revenue ............................................................ $500,000 .............. $450,000

Net income ................................................................. $ 44,500 ............... $ 42,000

Interest expense ............................................................. $ 500 .................... $ 500

Average total assets ................................................. $250,000 .............. $240,000


Compute return on assets for 2016 and 2017. Did the return on assets improve in 2017? What would cause this ratio to change?

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Financial Accounting

ISBN: 978-0134564142

6th Canadian edition

Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin

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