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SG reports net income of $38,000 for 2015. At the beginning of 2015, SG had $169,000 in
assets. By 2015, assets had grown to $219,000.Choose Numertor /Choose Denomenator =Return
Assets/=
Solution
Average assets=(Beginning balance+Ending balance)/2
which is equal to
=(169000+219000)/2=$194000Net income/Average assets=Return
Assets38000/194000=19.59%(Approx).

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SG reports net income of $38,000 for 2015. At the beginning of 2015,.pdf

  • 1. SG reports net income of $38,000 for 2015. At the beginning of 2015, SG had $169,000 in assets. By 2015, assets had grown to $219,000.Choose Numertor /Choose Denomenator =Return Assets/= Solution Average assets=(Beginning balance+Ending balance)/2 which is equal to =(169000+219000)/2=$194000Net income/Average assets=Return Assets38000/194000=19.59%(Approx).