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Q6TI.

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Horngren'S Financial And Managerial Accounting
Found in: Page 25

Short Answer

Using the following information, calculate the return on assets. Net income for November, 2018 $ 5,000 Total assets, November 1, 2018 76,000 Total assets, November 30, 2018 80,250

The return on assets equals 6.40%.

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Step by Step Solution

Explanation on return on assets

Return on assets measures the business's profitability by utilizing its total assets.

Return on assets calculation

Return on asset is calculated as follows:

Thus, the return on assets is 6.40%.

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