ou have been asked to consider investing in

ASAP

Printing Services Inc.

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(Click on the icon for

ASAP's

balance sheet for December 31,

2019.)

Additional information:
Total assets, January 1, 2019	$4,095,000
Net Income for 2019	$430,000
No new shares were issued in 2019.

Required

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Requirement 1a. Calculate the rate of return on total assets for

2019.

(Round the percentage to the nearest tenth percent, X.X%.)The rate of return on total assets for

2019

is

nothing%.

Requirement 1b. Calculate the rate of return on common shareholders' equity for

2019.

(Round the percentage to the nearest tenth percent, X.X%.)The rate of return on common shareholders' equity is

nothing%.

Requirement 2. If the minimum rate of return for each of the above ratios is

12

percent, will you invest in this business?

A.No because both rates are below

12%.

B.No because only the rate of return on assets is above

12%.

C.Yes because both rates above

12%.

D.No because only the rate of return on common shareholders' equity is above

12%.

Click to select your answer(s).