Question
Question: A company has the following information from its balance sheet: Assets Amount (USD) Liabilities and Equity Amount (USD) Cash $220,000 Accounts Payable $70,000 Accounts
Question:
A company has the following information from its balance sheet:
Assets | Amount (USD) | Liabilities and Equity | Amount (USD) |
Cash | $220,000 | Accounts Payable | $70,000 |
Accounts Receivable | $130,000 | Notes Payable | $75,000 |
Inventory | $150,000 | Long-term Debt | $300,000 |
Property | $350,000 | Shareholders' Equity | $600,000 |
Calculate the return on assets (ROA) for the company based on the provided balance sheet and the net income of $60,000.
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
978-0324300987
