Ridgetop Corporation Reported the Following Amounts on Its Balance Sheet

Essay

Ridgetop Corporation reported the following amounts on its balance sheet at December 31, 2014: $$\begin{array} { | l | r | } \hline \text { Total current assets } & \$ 1,800,000 \\\hline \text { Total long-term assets } & 900,000 \\\hline \text { Total current liabilities } & 1,300,000 \\\hline \text { Total long-term liabilities } & 500,000 \\\hline \text { Total stockholders' equity } & 900,000 \\\hline \text { Net income } & 100,000 \\\hline\end{array}$$ On January 1, 2014, total assets were $2,000,000, total liabilities were $1,200,000 and total stockholders' equity was $800,000. Calculate Ridgetop's return on assets.