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In January 2 0 0 9 , the Status Quo Company was formed. Total assets were $ 5 4 4 , 0 0 0 ,

In January 2009, the Status Quo Company was formed. Total assets were $544,000, of which $306,000 consisted of
depreciable fixed assets. Status Quo uses straight-line depreciation of $30,600 per year, and in 2009 it estimated its fixed
assets to have useful lives of 10 years. Aftertax income has been $29,000 per year for each of the last 10 years. Other
assets have not changed since 2009.
a. Compute return on assets at year-end for 2009,2011,2014,2016 and 2018.
Note: Input your answers as a percent rounded to 2 decimal places.
b. To what do you attribute the phenomenon shown in part a?
Annual depreciation charges
Increase in market share
Increase in current assets
c. Now assume income increased by 10 percent each year. What effect would this have on your answers to part a?
Return on assets will be
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