Ridgetop Corporation reported the following amounts on its balance sheet at December 31, 2016: On January 1, 2016, total assets were $2,000,000, total liabilities were $1,200,000 and total stockholders' equity was $800,000.
Requirement:
Calculate Ridgetop's return on assets.

Question

Ridgetop Corporation reported the following amounts on its balance sheet at December 31, 2016:  On January 1, 2016, total assets were $2,000,000, total liabilities were $1,200,000 and total stockholders' equity was $800,000.
Requirement:
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, 2016:  On January 1, 2016, total assets were $2,000,000, total liabilities were $1,200,000 and total stockholders' equity was $800,000.
Requirement:
Calculate Ridgetop's return on assets.

Ridgetop Corporation Reported the Following Amounts on Its Balance Sheet