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Wraps & More Presented below are selected income statement and balance sheet amounts (dollars in thousands) for Wraps and More. Compute the return on assets
Wraps & More Presented below are selected income statement and balance sheet amounts (dollars in thousands) for Wraps and More. Compute the return on assets (ROA) for the current and prior years and explain the meaning of the change. Explain the major causes of change in return on assets (ROA) using the ROA profit driver analysis. Current Year Prior Year Net Sales $1,265,423 $943,336 Net Income $253,084 $169,800 Average shareholders' equity $759,354 $471,668 Average total assets $1,366,657 $1,018,803 Week 3 Assignment: ROA Calculations Explore Rachel's story in Accountopia. Using the template below, compute the return on assets (ROA) and the ROA profit driver analysis for the current and prior years. In the same document, explain the major causes of change using the ROA profit driver analysis. Click here to access the ROA Word document template. Part I Calculations ROA Current Year Prior Year Net Income Average Total Assets AA = ROA Profit Driver Analysis Current Year Prior Year $ Net Income Net Sales ole Net Sales Average Total Assets Return on Assets Part II Narrative
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