Gulick Corporation\'s most recent income statement appears below: The beginning

Question

Gulick Corporation's most recent income statement appears below:

The beginning balance of total assets was $300,000 and the ending balance was $260,000.

1. Compute the return on total assets. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

The beginning balance of total assets was $300,000 and the ending balance was $260,000.

1. Compute the return on total assets. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Sales (all on account) Cost of goods sold $300,000 150,000 Gross margin Selling and administrative expense 150,000 68,000 Net operating income Interest expense 82,000 11,000 Net income before taxes Income taxes (30%) 71,000 21,300 Net income $ 49,700

Explanation / Answer

the return on total assets. =net income / Average total assets=49,700/(300,000+260,000)/2=17.75%

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