Return on assets (ROA) and fixed asset turnover ratio

(Learning Objective 10) 10–15 min.

The following is selected data for Ibanez Industries:

Sales ...............................................................

Net income......................................................

Total, current assets, ending...........................

Property, plant and equipment, ending ...........

Total assets, ending ........................................

$1,582,000 151,000 153,000 764,000 917,000 2013

$1,427,000 129,000 165,000 736,000 901,000 2012

$1,468,000 142,000 158,000 768,000 926,000 2014 Requirements 1. Calculate the return on assets (ROA) and the fixed asset turnover ratio for Ibanez Industries for 2013 and 2014. Round your answers to two decimal places.

2. Have the ratios improved or deteriorated? Comment on the trend in both ratios.

AppendixLO1