The TXJ Companies, Inc., which operates the T. J. Marx, Mitchells, and GoodHome chains, is the leading off-price apparel and home fashions retailer in the U. S. and worldwide. Presented here are selected recent income statement and balance sheet amounts (dollars in thousands).

Current Year Prior year
Net sales $ 33,183,744 30,944,938
Net income 2,298,234 2,277,658
Average shareholders' equity 4,408,837 4,285,653
Average total assets Current Year 12,187,120 11,239,591 Compute ROA for the current and prior years.

ROA for the current year: 18.86%

ROA for the Prior year: 20.26%

Explanation:

Return on assets (ROA) helps an investor see how much after-tax profit a company gained for each dollar in assets, is calculated by formula:

ROA = Net Income/  Average Total Assets

In Current year, The TXJ Companies, Inc. had Net income of $2,298,234 and Average total assets of $12,187,120

ROA for the current year = ($2,298,234/$12,187,120)x100% = 18.86%

In Prior year, the company had Net income of $2,277,658 and Average total assets of $11,239,591.

ROA for the Prior year = ($2,277,658/$11,239,591)x100% = 20.26%

answer; (10%) commission;

answer; situational irony;