Use the following to answer questions
Pioneer Industries gathered the following year-end data (in thousands) for 2010 and 2009:
$$\begin{array} { l r r }
\text { Curent Assets } & \frac { 2010 } { 2009 } & \frac { 2345 } { \$ 365 } \
\text { Long-Tenn Arsets } & 790 & 720 \
\text { Curtert Liabilities } & 280 & 310 \
\text { Long-Term Liabilities } & 410 & 440 \
\text { Owners' Equity } & 445 & 335 \
\text { Net Sales } & 830 & 790 \
\text { Gross Margir } & 375 & 355 \
\text { Net Income } & 120 & 105
\end{array}$$
-The return on assets for 2010 was:
A)9.5%
B)10.6%
C)10.8%
D)33.8%

Question

Use the following to answer questions 
Pioneer Industries gathered the following year-end data (in thousands) for 2010 and 2009:
 $$\begin{array} { l r r } 
\text { Curent Assets } & \frac { 2010 } { 2009 } & \frac { 2345 } { \$ 365 } \
\text { Long-Tenn Arsets } & 790 & 720 \
\text { Curtert Liabilities } & 280 & 310 \
\text { Long-Term Liabilities } & 410 & 440 \
\text { Owners' Equity } & 445 & 335 \
\text { Net Sales } & 830 & 790 \
\text { Gross Margir } & 375 & 355 \
\text { Net Income } & 120 & 105
\end{array}$$
-The return on assets for 2010 was:
A)9.5%
B)10.6%
C)10.8%
D)33.8%

Quizplus · Accepted Answer

Return on assets (ROA) is calculated by dividing net income by total assets. 
ROA for 2010 = (Net Income 2010 / Total Assets 2010) 
Total Assets 2010 = Current Assets 2010 + Long-Term Assets 2010 = 2345 + 790 = 3135 
Net Income 2010 = 120 
ROA for 2010 = (120 / 3135) x 100 = 3.82% 
Therefore, the best choice is C, since none of the given options match the calculated value.

Use the Following to Answer Questions Pioneer Industries Gathered

Use the Following to Answer Questions
Pioneer Industries Gathered