Register
The balance sheet of Hidden Valley Farms reports total assets of $850,000 and $985,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Hidden Valley's
435,410 views
7 votes
7 votes
The balance sheet of Hidden Valley Farms reports total assets of $850,000 and $985,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Hidden Valley's net income for the year

User Kaysush
by
2.9k points

1 Answer

22 votes
22 votes

Answer: $91750

Step-by-step explanation:

Following the information given, Hidden Valley's net income for the year will be calculated thus:

return on assets = net income / average assets

10% = Net income / [(850000 + 985000)/2]

0.1 = Net Income / (1835000/2)

0.1 = Net income / 917500

Net income = 917500 × 0.1

Net income = 91750

Therefore, Hidden Valley's net income for the year is $91750.

User NIKHIL RANE
by
3.3k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
Link Copied!