Net income $ 410,000
Interest expense 90,000
Average total assets 5,000,000
Determine the rate earned on total assets.
Answer:
Rate Earned on Total Assets = Net Income + Interest Expense Average Total Assets Rate Earned on Total Assets = Rate Earned on Total Assets = $410,000 + $90,000 $5,000,000 $500,000 $5,000,000
A company reports the following income statement and balance sheet information for the current year:
Net income $ 250,000
Interest expense 100,000
Average total assets 2,500,000
Determine the rate earned on total assets.
Answer:
Rate Earned on Total Assets =
Net Income + Interest Expense
Rate Earned on Total Assets =
Rate Earned on Total Assets =
$250,000 + $100,000
$2,500,000
$2,500,000
Rate Earned on Total Assets = 14.0%
Net income $ 250,000
Interest expense 100,000
Average total assets 2,500,000
Determine the rate earned on total assets.
Answer:
Rate Earned on Total Assets =
Net Income + Interest Expense
Rate Earned on Total Assets =
Rate Earned on Total Assets =
$250,000 + $100,000
$2,500,000
$2,500,000
Rate Earned on Total Assets = 14.0%
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