Question
Rohlen Company reported the following balance sheet and income statement information: Total assets, Dec. 31, 2022.............. $97,000 Total assets, Dec. 31, 2021.............. $85,000 Total liabilities,
Rohlen Company reported the following balance sheet and income statement information:
Total assets, Dec. 31, 2022.............. $97,000 Total assets, Dec. 31, 2021.............. $85,000 Total liabilities, Dec. 31, 2022........... $13,000 Total liabilities, Dec. 31, 2021........... $10,000 Sales revenue, Dec. 31, 2022........... $56,000 Sales revenue, Dec. 31, 2021........... $51,000 Net income, Dec. 31, 2022............... $22,000 Net Income, Dec. 31, 2021............... $18,000
Return on Equity (ROE) if composed of Return on Assets and financial leverage. Compute Rohlen's Return on Assets (ROA) for the year ended December 31, 2022. (Enter your answer as a percentage rounded to two decimal places. Do not include the % sign. For example: 0.12345 = 12.35%; enter as 12.35)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started