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23 May, 11:31

Matured Water Services had net income for the month of October of $ 50 comma 880. Assets as of the beginning and end of the month totaled $ 362 comma 000â, and $ 486 comma 000â, respectively. Calculate Matured Waterâ Services' ROA for the month of October.

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  1. 23 May, 15:18
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    12%

    Explanation:

    Given that,

    Net income = $50,880

    Asset at the beginning = 362,000

    Asset at the end = 486,000

    Average total assets:

    = (Asset at the beginning + Asset at the end) : 2

    = (362,000 + 486,000) : 2

    = $424,000

    Therefore,

    ROA = Net income : Average total assets

    = $50,880 : $424,000

    = 0.12 or 12%

    Therefore, the Matured Water Services' ROA for the month of October is 12%.
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