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In the previous year, Orange Corporation had total assets of $22,000; total liabilities $19,000; and total equity of $3.000. In the current year, Orange Corporation
In the previous year, Orange Corporation had total assets of $22,000; total liabilities $19,000; and total equity of $3.000. In the current year, Orange Corporation has the following account balances (alphabetical order): Accounts payable $ 1.000 Accounts receivable 1,000 Cash 1,000 Cost of goods sold 8,000 Ending paid-in-capital 1,000 Ending retained earnings 4,000 Equipment 12,000 Interest expense 1,000 Long-term debt 10,000 Merchandise inventory 4.000 Net sales 16,000 Operating expenses 3.000 Wages payable 2.000 Based on the account balances above, calculated the approximate return on asset (ROA) ratio 20% 25% 30% 40%
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