Net income $ 410,000
Interest expense 90,000
Average total assets 5,000,000
Determine the rate earned on total assets.
Answer:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkRHys4T99xLnWpcwfGDpVvwse8GWU2B_5cP2SLpyku7aaXxdr5N9H7DASa3w5WRoB2y2wzQVSq6OTwbv3R_GP8vDuyrj1zZQ8RBo97OOUWXusKEQPW02wOgOQlSrapa4G7ca9KMLY7D4d/s640/IMG_4312.jpeg)
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:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_KWFH0P-NRq__khekMcO68ulcp5AtTPglSPY1aNhAkY1llEZJQPrCGtX4BSD9dWFYCY55ZRDbnoTvqK3d9qIXwwwDkGir7Bd5RANl4jYLj83fIdCLp9XIVcxIzxljOYhKtnvXX_ATUX3W/s640/IMG_4311.jpeg)
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:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_KWFH0P-NRq__khekMcO68ulcp5AtTPglSPY1aNhAkY1llEZJQPrCGtX4BSD9dWFYCY55ZRDbnoTvqK3d9qIXwwwDkGir7Bd5RANl4jYLj83fIdCLp9XIVcxIzxljOYhKtnvXX_ATUX3W/s640/IMG_4311.jpeg)
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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