A company reports the following income statement and balance sheet information for the current year: Net income

Question:

A company reports the following income statement and information for the current year:

Net income $ 400,000
Interest expense 20,000
Average total assets 3,500,000

Determine the rate earned on total assets.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...