Question

The balance sheet of Hidden Valley Farms reports total assets of $815,000 and $955,000 at the beginning and end of the year, respectively. The return on assets for the year is 15%. What is Hidden Valley's net income for the year

Answer 1

$132,750

Step-by-step explanation:

Calculation for Valley net income for the year

Net income=[815,000+955,000/2]*15%

Net income=(1,770,000/2)*15%

Net income=885,000*15%

Net income=$132,750

Therefore Valley net income for the year will be $132,750