Question

How to find cash? and calculate total assets? ROA= NI/Total assets

Category	Prior year	Current year
Accounts payable	41,400	45,000
Accounts receivable	115,200	122,400
Accruals	16,200	13,500
Additional paid in capital	200,000	216,660
Cash	???	???
Common Stock @ par value	37,600	42,000
COGS	131,400	178,190.00
Depreciation expense	21,600	22,533.00
Interest expense	16,200	16,634.00
Inventories	111,600	115,200
Long-term debt	135,000	138,345.00
Net fixed assets	377,719.00	399,600
Notes payable	59,400	64,800
Operating expenses (excl. depr.)	50,400	60,541.00
Retained earnings	122,400	136,800
Sales	255,600	337,945.00
Taxes	9,900	18,616.00

What is the current year's return on assets (ROA)?

Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Answer 1

total assets = Total liabilities + total equity

Total liabilities + total equity = Accounts payable + Accruals + Additional paid in capital + common stock + Long-term Debt + Notes Payable + Retained earnings

So for current year

=> Total liabilities + total equity = 45000 + 13500 + 216660 + 42000 + 138345 + 64800 + 136800 = $657105

So, total assets = $657105

So, cash = Total assets - Accounts receivable - inventories - Net fixed assets

=> cash = 657105 - 122400 - 115200 - 399600 = $19905

And Net income = Sales - COGS - Operating Exp - Depreciation - Interest Exp - Taxes

=> for current year, Net income = 337945 - 178190 - 60541 - 22533 - 16634 - 18616 = $41431

So, Return on assets = NI/Total assets = 41431/657105 = 6.31%