In January 2007, the Status Quo Company was formed. Total assets were $563,000, of which $349,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $34,900 per year, and in 2007 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $63,000 per year for each of the last 10 years. Other assets have not changed since 2007. a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $63,000 in the numerator for each year.)
In January 2007, the Status Quo Company was formed. Total assets were $563,000, of which $349,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $34,900 per year, and in 2007 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $63,000 per year for each of the last 10 years. Other assets have not changed since 2007. a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $63,000 in the numerator for each year.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In January 2007, the Status Quo Company was formed. Total assets were $563,000, of which $349,000 consisted of
a. Compute
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