Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Q. 16SE

Expert-verified
Horngren'S Financial And Managerial Accounting
Found in: Page 36

Short Answer

Calculating ROA Matured Water Services had net income for the month of October of $50,880. Assets as of the beginning and end of the month totaled $362,000, and $486,000, respectively. Calculate Matured Water Services' ROA for the month of October

ROA equals 12%.

See the step by step solution

Step by Step Solution

Step1: Explanation on ROA

Return on assets (ROA)measures the business's profitability by utilizing the total assets of the business.

Step2: Calculation of ROA

ROA is calculated as follows:

Thus, the return on assets is 12%.

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.