Alurve appliance service had net income for the year of $ 30, 400. in addition, the balance sheet reports the following balances: jan. 1, 2016 dec31, 2016accounts receivable $ 5,600 $ 14,200accounts payable 12,000 9,500building 125,000 125,000cash 37,500 35,000office furniture 25,000 50,000office supplies 3,200 1,500notes payable 60,000 75,000total stockholders' equity 124,300 141,200calculate the return on assets (roa ) for the year ending december 31, 2016.

Return on Assets for the year 2016 = 13.47%

Explanation:

Return on Assets is calculated as a percentage of net income on total assets.

Here, total assets on December 31 = Accounts Receivables + Building + Cash + Furniture + Office Supplies = $14,200 + $125,000 + $35,000 + $50,000 + $1,500 = $225,700

Total assets can also be calculated using Liabilities + Owner's Equity

= $141,200 + $75,000 + $9,500 = $225,700

Return on Assets =

=

Return on Assets for the year 2016 = 13.47%