Jones Company had net income of $10,000 for the year

Accounting Jan 24, 2021

Jones Company had net income of $10,000 for the year. Beginning total assets were $150,000 and ending assets were $200,000 What is Jones Company's return on assets (ROA) for the year?

Expert Solution

solution:

Return on assets ( ROA ) = Net income / average total assets

ROA = $ 10000 / ( $ 150000 + $ 200000 )/2

ROA = $ 10000 / $ 175000

ROA = 0.0571 ( or ) 5.71%

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