Computing and Interpreting Return on Assets Saunders, Inc , recently reported the following December 31 amounts in its financial statements (dollars in thousands) Compute return on assets for the current year What does this ratiomeasure Current Year Prior Year Gross profit S 170 $120 40 900 Net inc...

Return on assets ROA Net income 80 ...

Computing and Interpreting Return on Assets Saunders, Inc., recently reported the following December 31 amounts in its

Question:

Computing and Interpreting Return on Assets
Saunders, Inc., recently reported the following December 31 amounts in its (dollars in thousands):

Current Year Prior Year Gross profit S 170 $120 40 900 Net income Total assets 80 1,000 Total shareholders' equity 600 8

Compute return on assets for the current year. What does this ratiomeasure?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...