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The Balance Sheet and Income Statement information for Night Train, Inc for the last two years is presented below. You are a financial manager attempting
The Balance Sheet and Income Statement information for Night Train, Inc for the last two years is presented below. You are a financial manager attempting to identify initial red flags, strengths and weaknesses from just the information below. Which of the following statements is the best one describing Return on Assets (ROA)? 
The Balance Sheet and Income Statement information for Night Train, Inc for the last two years is presented below. You are a financial manager attempting to identify initial red flags, strengths and weaknesses from just the information below. Which of the following statements is the best one describing Return on Assets (ROA) BALANCE SHEET
2019
2020
INCOME STATEMENT
2019
2020
Cash
75,000
70,000
Sales
275,000
260,000
Marketable Securities
35,000
Accounts Receivable
25,000
30,000
Cost of Sales
195,000
190,000
30,000
Gross Profit
80,000
70,000
Inventory
45,000
55,000
Other Expenses
10,000
15,000
Fixed Assets
420,000
400,000
Earnings Before
Total Assets
600,000
585,000
Interest & Taxes
Accounts Payable
20,000
40,000
70,00
Interest
25,000
Short-Term Bank Loans
55,000
75,000
Earnings Before Taxes
45,000
Long-Term Debt
375,000
Total Liabilities
350,000
Taxes
10,000
450,000
465,000
Net Income
35,000
55,000
20,000
35,000
7,000
28,000
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
