The following information is provided for Sandhill Company and Indigo Corporation.(in $ millions)Sandhill Company Indigo CorporationNet income 2022 $125 $375 Net sales 20221540 4500 Total assets 12/31/201045 2010 Total assets 12/31/211220 3150 Total assets 12/31/221175 4070 What is Indigo's return on assets for 2022?

Return on assets: It can be defined as a financial ratio that measures the company’s profitability of generating returns by utilizing its assets effectively. Calculation of the return on assets of S company and I company as follows: Result of the above:

Answered: The following information is provided…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is provided for Sandhill Company and Indigo Corporation.

(in $ millions)	Sandhill Company
Net income 2022	$125	$375
Net sales 2022	1540	4500
Total assets 12/31/20	1045	2010
Total assets 12/31/21	1220	3150
Total assets 12/31/22	1175	4070

What is Indigo's return on assets for 2022?

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