Answer:
A. Kyzera's return on assets=26%
B. Yes, Kyzera's ability to generate revenue as compared to the assets it has is 26% which is greater than it's competitors average of 12%. Kyzera's return on assets seems satisfactory.
C. Average total amount of liabilities and equity for Kyzera=$250,000
D. Total expenses for Kyzera in its most recent year=$410,000
Step-by-step explanation:
An asset is any financial resource that can be used to generate income. The return on asset is a tool that can be used to measure the ability of a company's assets to generate revenue. The return on assets is the ratio of the net income after accounting for all the expenses and cost over the average total assets. The return on assets can be computed as follows;
A.
ROA=I/A
where;
ROA=return on assets
I=net income
A=average total assets
In our case;
ROA=unknown
I=$65,000
A=$250,000
replacing;
ROA=(65,000/250,000)×100=26%
Kyzera's return on assets=26%
B.
Yes, Kyzera's ability to generate revenue as compared to the assets it has is 26% which is greater than it's competitors average of 12%. Kyzera's return on assets seems satisfactory.
C.
Use the formula below to determine total liabilities;
Total assets=Liabilities+equity
since Total assets=$250,000
Liabilities+equity=$250,000
Average total amount of liabilities and equity for Kyzera=$250,000
D.
Net income=Revenues-Expenses
where;
net income=$65,000
revenues=$475,000
expenses=unknown
replacing;
65,000=475,000-expenses
Expenses=475,000-65,000=$410,000
Total expenses for Kyzera in its most recent year=$410,000