Ratios: Return on Assets (ROA) Video Lessons

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Problem: The following information is available for Manhattan Quarry for the current year: Net income: $200,000 Interest expense: 20,000 Beginning of year: Total assets: 600,000 , Total common stockholders' equity: 400,000 End of year: Total assets: 750,000, Total common stockholders' equity: 450,000 The return on assets (ROA) for Manhattan Quarry is:   a. 26.7% b. 32.6% c. 42.4% d. 51.8%

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Problem Details

The following information is available for Manhattan Quarry for the current year:

Net income: $200,000

Interest expense: 20,000

Beginning of year: Total assets: 600,000 , Total common stockholders' equity: 400,000

End of year: Total assets: 750,000, Total common stockholders' equity: 450,000

The return on assets (ROA) for Manhattan Quarry is:

a. 26.7%

b. 32.6%

c. 42.4%

d. 51.8%

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