Question
Average Total Assets, Return on Assets Juroe Company provided the following income statement for last year: Sales $11,500,000 Cost of goods sold 3,000,000 Gross margin
Average Total Assets, Return on Assets
Juroe Company provided the following income statement for last year:
Sales | $11,500,000 |
Cost of goods sold | 3,000,000 |
Gross margin | $8,500,000 |
Operating expenses | 3,800,000 |
Operating income | $4,700,000 |
Interest expense | 1,000,000 |
Income before taxes | $3,700,000 |
Income taxes | 1,400,000 |
Net income | $2,300,000 |
Juroe's balance sheet as of December 31 last year showed total liabilities of $10,800,000, total equity of $6,250,000, and total assets of $17,050,000.
Also, assume that Juroe's total assets at the beginning of last year equaled $17,350,000 and that the tax rate applicable to Juroe is 40%.
Required:
1. Calculate the average total assets. $fill in the blank 1
2. Calculate the return on assets. Round your answer to two decimal places. fill in the blank 2%
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