Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 29

Average Total Assets, Return on Assets
Juroe Company provided the following income statement for last year:
Juroe's balance sheet as of December 31 last year showed total liabilities of $10,250,000, total equity of $6,150,000, and total assets of $16,400,000.
Refer to the information for Juroe Company above. Also, assume that Juroe's total assets at the beginning of last year equaled $17,350,000 and that the tax rate applicable to Juroe is 40%.
Required:
Note : Round answers to two decimal places.
1. Calculate the average total assets.
2. Calculate the return on assets.