Ridgetop Corporation reported the following amounts on its balance sheet at December 31,2011:
$$\begin{array} { l r }
\text { Total current assets } & \$ 1,800,000 \
\text { Total long-term assets } & 900,000 \
\text { Total current liabilities } & 1,300,000 \
\text { Total long-term liabilities } & 500,000 \
\text { Total equity } & 900,000 \
\text { Net income } & 100,000
\end{array}$$ On January 1,2011,total assets were $2,000,000,total liabilities were $1,200,000 and total equity was $800,000.Calculate Ridgetop's return on assets.

Question

Ridgetop Corporation reported the following amounts on its balance sheet at December 31,2011:
 $$\begin{array} { l r } 
\text { Total current assets } & \$ 1,800,000 \
\text { Total long-term assets } & 900,000 \
\text { Total current liabilities } & 1,300,000 \
\text { Total long-term liabilities } & 500,000 \
\text { Total equity } & 900,000 \
\text { Net income } & 100,000
\end{array}$$ On January 1,2011,total assets were $2,000,000,total liabilities were $1,200,000 and total equity was $800,000.Calculate Ridgetop's return on assets.

Quizplus · Accepted Answer

The Answer of Ridgetop Corporation reported the following amounts on its balance sheet at December 31,2011:
 $$\begin{array} { l r } 
\text { Total current assets } & \$ 1,800,000 \
\text { Total long-term assets } & 900,000 \
\text { Total current liabilities } & 1,300,000 \
\text { Total long-term liabilities } & 500,000 \
\text { Total equity } & 900,000 \
\text { Net income } & 100,000
\end{array}$$ On January 1,2011,total assets were $2,000,000,total liabilities were $1,200,000 and total equity was $800,000.Calculate Ridgetop's return on assets.

Ridgetop Corporation Reported the Following Amounts on Its Balance Sheet