The following accounts and balances are taken from year end financial statements
ID: 2385007 • Letter: T
Question
The following accounts and balances are taken from year end financial statements. Use the information to calculate return on assets for 2007.
2007 2006
Sales $507,924,000 $392,190,000
Cost of sales 330,466,000 249,667,000
Gross Margin 177,458,000 142,523,000
Operating Expenses 91,444,000 75,646,000
Net Operating income 86,014,000 66,877,000
Interesting Expense 3,293,000 3,523,000
Net Income before taxes 82,721,000 63,354,000
Income taxes 27,530,000 20,900,000
Net Income 55,191,000 42,454,000
Total assets $631,302,000 $534,815,000
Total current assets $217,808,000 $180,021,000
Explanation / Answer
507,924/(631,302+534,815)/2= 0.87