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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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