Asked by Kerri Lynn Eklund on Jun 20, 2024
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At the end of 2019,Jared Corporation reported a return on assets of 16%,average total assets of $365,000,and average total liabilities of $165,000.
What was Jared's net income?
Return on Assets
Return on assets (ROA) is a profitability ratio that measures how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.
Average Total Assets
A measure calculated by taking the sum of total assets at the beginning and end of a period and dividing by two, used to evaluate a company's asset utilization efficiency.
Average Total Liabilities
The average amount of money that a company owes to others over a specific time period, used to assess the company's financial health.
- Calculate net income based on given financial metrics including return on assets, total assets, and liabilities.
Verified Answer
Learning Objectives
- Calculate net income based on given financial metrics including return on assets, total assets, and liabilities.
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