Question: 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

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

Current Year Prior Year Gross profit S 170 $120 40 900 Net income Total assets 80 1,000 Total shareholders' equity 600 800

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