Question
Assets Extra Credit Instructions 1. Compute the Return on Assets for 2016 through 2018. Show your work. You may compute in an Excel spreadsheet. Please
Assets Extra Credit Instructions
1. Compute the Return on Assets for 2016 through 2018. Show your work. You may compute in an Excel spreadsheet. Please submit your computations as well as the ratios you compute. This is worth up to 2 points per year.
2. Additionally, please write no more than two paragraphs to the business owner with your opinion of how well their business is doing year-to-year. (Comparing the years to each other over time.) This is worth up to 2 points.
3. Please support your opinion by using the Return on Assets computations. Are there any additional questions you would like to ask in order to decide how healthy this business is?
Year Ending 12/31/20XX Assets Sample Company Return on Assets Data 2015 2016 2017 $ 187,770.12 $ 172,939.23 $ 133,125.82 2018 $ 202,259.69 Net Income $ 60,782.55 $ 51,934.49 $ 61,483.29 ACCT 111 - Chapter 1 Extra Credit Return on Assets Data: 2011 2012 2013 Assets 65,286.89 96,024.78 76,251.09 Net Income 75,971.51 41,579.16 Comments: There was a huge spike in Sales Revenue between 2011 and 2012. What effect might this have on both the Assets and the Net Income? (Which accounts would be affected?) What else might you like to know about this companyStep by Step Solution
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