Question

If the company's total assets are $115,676 at the beginning of the previous year, calculate the company's: (a) return on assets (round answers to one decimal place - ex: 10.7%) (b) asset turnover for both years (round answers to two decimal places)

Answer 1

The information needed to calculate Return on Assets and Asset Turnover, specifically net income and sales revenue, is not provided, so those calculations cannot be completed based on the information given.

Step-by-step explanation:

The Return on Assets (ROA) is calculated by dividing the net income by the total assets. However, the provided information lacks the net income figure. With available data, ROA cannot be calculated without knowing the company's net income for the previous year.

For Asset Turnover, this ratio is computed by dividing the sales revenue by the average total assets. Again, the sales revenue for both years is necessary to calculate this measure. Since the question does not provide annual sales figures, asset turnover cannot be calculated.

In the supplied information, the company has net assets of $102 million, but it is unclear how this figure relates to the total assets at the beginning of the year. Also, the bank T-account question with deposits and reserves provided does not seem related to the original request about assets and turnover.