Final answer:
Calculate ROA (Return on Assets) for Alphabet Inc., the net income would be divided by the average total assets. The average total assets are found by taking the sum of the asset values at the beginning and end of the year and dividing by two. Without the specific financial figures, we cannot compute the exact ROA value.
Step-by-step explanation:
The question asks to calculate the Return on Assets (ROA) for Alphabet Inc. for the year 2016 using average balances for any balance sheet amounts. ROA is a financial ratio that indicates how profitable a company is relative to its total assets. The formula to calculate ROA is Net Income divided by Average Total Assets. Without the specific figures for Net Income and Total Assets, it is not possible to calculate the exact ROA in this case. However, the aim is to determine the correct method to calculate ROA rather than obtaining an exact numerical answer.
To calculate ROA with average balances, you would typically add the asset value at the beginning of the year to the asset value at the end of the year, and then divide by two to get the average. Once you have the average asset value, divide the net income by this average to get the ROA.