In January 2009, the Status Quo Company was formed. Total assets were $527,000, of which $397,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $39,700 per year, and in 2009 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $30,000 per year each of the last 10 years. Other assets have not changed since 2009.

1. 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.

2. To what do you attribute the phenomenon shown in part a?

   multiple choice

   • Increase in current assets

   • Increase in market share

   • Annual depreciation charges

3. Now assume income increased by 10 percent each year. What effect would this have on your answers to part a?