A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 one year ago
Look at the following summary of ABC Inc.’s accounts on December 31, 2012.
current liabilities: $25,000
total assets: $3,00,000
investments: $75,000
total liabilities: $80,000
net income (after tax): $100,000
current assets: $55,000
inventory: $5,000.
Calculate the return on assets.
A: 1 : 3
B: 3 : 2
C: 3 : 1
D: 1 : 2
E: 2 : 1
anonymous
 one year ago
Look at the following summary of ABC Inc.’s accounts on December 31, 2012. current liabilities: $25,000 total assets: $3,00,000 investments: $75,000 total liabilities: $80,000 net income (after tax): $100,000 current assets: $55,000 inventory: $5,000. Calculate the return on assets. A: 1 : 3 B: 3 : 2 C: 3 : 1 D: 1 : 2 E: 2 : 1

This Question is Closed

mathmate
 one year ago
Best ResponseYou've already chosen the best response.0An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment". ( http://www.investopedia.com/terms/r/returnonassets.asp) Is the total assets $3,000,000 or $300,000 ?
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.