Return of assets = Profit /(average total assets). If a new item of equipment is revalued up during the year for the first time, which is incorrect:  Return on assets' remains unchanged 'ave total assets' will increase 'Other comprehensive income' will increase 'profit' will decrease due to increased depreciation

Return of assets = Profit /(average total assets). If obsolete inventory is written down, Dr 'Inventory write down' (expense), Cr Inventory, which is incorrect:  'Return on assets' will increase 'profit' will decrease The impact on the numerator is proportionally greater 'ave total assets' will decrease

The return on total assets assesses:Group of answer choiceshow efficiently a business has used its economic resourcesthe return for ownersthe mix of debt and equity in a businesshow many assets a business needs to replace

If profit is $21,000, after deducting interest of $5,000, and average total assets are $150,000, calculate return on assets to assess profitability from a management viewpoint.

Eastevan Company calculated its return on investment as 10 percent. Sales are now $300,000, and the amount of total operating assets is $320,000. RequiredIf expenses are reduced by $28,000 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)

Fill in the Blank QuestionFill in the blank question.Assume straight-line depreciation and equal cash flows. A company plans to purchase equipment for $25,000. The equipment will have $0 salvage value and increase income by $7,500 annually during its 5-year life. The accounting rate of return is %.