Analysis and Interpretation of Company Profitability exercise
Return on assets = Net income / Average total assets = $20,000 / [($100,000 + $150,000)/2] = 16% Interpretation: Its return on assets of 16% is markedly above the 10% return of its competitors. Accordingly, its performance is assessed as superior to its competitors. Exercise 1-19B (10 minutes) a. Financing. b. Investing. c. Operating. d ... ................
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