What is this company\'s return on assets for 2017? Income Statement ($000s) Bala

Question

What is this company's return on assets for 2017? Income Statement ($000s) Balance Sheet ($000s) 2017 2016 2017 2016 Revenues $ 200 $175 Cash $ 10 $150 Cost of Goods Sold 110 100 Accounts Receivable 30 40 Operating Expenses 30 28 Inventory 20 40 Interest Expense 20 12 Plant, Property, Equipment 180 200 Net Income 40 35 Total Assets $ 240 $430 Accounts Payable $ 15 $ 25 Bank Debt Due in 6 Months 15 50 Long term Debt 80 245 Common Stock 60 60 Retained Earnings 70 50 Total Liabilities & Equity $ 240 $430 The company has 1,000,000 shares of common stock authorized, 500,000 shares issued, and 200,000 outstanding as of both 12/31/2017 and 12/31/2016.

Explanation / Answer

2017 Return on assets = net income / Average total assets Net income 40 Beginning total assets 430 Ending total assets 240 Average total assets 335 Return on assets 11.9%

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