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Ridgetop Corporation Reported the Following Amounts on Its Balance Sheet

Question 84

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Ridgetop Corporation reported the following amounts on its balance sheet at December 31, 2014:  Total current assets $1,800,000 Total long-term assets 900,000 Total current liabilities 1,300,000 Total long-term liabilities 500,000 Total stockholders’ equity 900,000 Net income 100,000\begin{array} { | l | r | } \hline \text { Total current assets } & \$ 1,800,000 \\\hline \text { Total long-term assets } & 900,000 \\\hline \text { Total current liabilities } & 1,300,000 \\\hline \text { Total long-term liabilities } & 500,000 \\\hline \text { Total stockholders' equity } & 900,000 \\\hline \text { Net income } & 100,000 \\\hline\end{array} On January 1, 2014, total assets were $2,000,000, total liabilities were $1,200,000 and total stockholders' equity was $800,000. Calculate Ridgetop's return on assets.

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$100,000 ÷ ($2,000,0...

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