Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate Return on Assets. Round the answers to two decimal places in percentage form. Balance Sheet December 31, 2014 Income Statement, Year of 2014 Solution Answer: Return on Assets is 9.81% Calculation : Net Income/Avarage Total Assets = (262210.80/2672300) = 0.09812 = 9.81% .

1. Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate Return on Assets.
Round the answers to two decimal places in percentage form.
Balance Sheet December 31, 2014
Income Statement, Year of 2014
Cash and marketable
securities
$132,000 Accounts payable $399,000
Accounts receivable $311,000 Notes payable $98,500
Inventories $512,000 Accrued expenses $89,300
Prepaid expenses $11,300 Total current liabilities $586,800
Total current assets $966,300 Long-term debt $799,400
Gross fixed assets $2,104,000 Par value and paid-in-capital $298,000
Less: accumulated
depreciation
$398,000 Retained Earnings $988,100
Net fixed assets $1,706,000 Common Equity 1,286,100
Total assets $2,672,300 Total liabilities and owner’s equity $2,672,300
Solution
Answer: Return on Assets is 9.81%
Calculation :
Net Income/Avarage Total Assets = (262210.80/2672300) = 0.09812 = 9.81%