Question

The following information is provided for Ivanhoe Company and Sarasota Corporation.

(in $ millions) Ivanhoe Company Sarasota Corporation
Net income 2022 $170 $350
Net sales 2022 1790 4790
Total assets 12/31/20 1075 2340
Total assets 12/31/21 1285 3150
Total assets 12/31/22 1195 4070
What is Bridgeport's return on assets (rounded) for 2017?

Answer 1

Answer: 9.695%

Step-by-step explanation:

Based on the information given in the question, Bridgeport's return on assets for 2022 will be:

= Net income / Average total assets

= $350 / ($3150+$4070/2)

= $350/($7220/2)

= $350/$3610

= 0.09695

= 9.695%

Therefore, Bridgeport's return on assets for 2022 will be 9.695%