Acompany reports the following income statement and balance sheet information for the current year: net income $250,000 interest expense 100,000 average total assets 2,500,000 determine the return on total assets. round percentage to one decimal place.

The return on total assets or ROA is 0.1

Explanation:

The return on total assets or ROA is calculated this way:

Net income / Average total assets

In this case:

Net income =$250,000 and  Average total assets =  $2,500,000

$250,000 / $2,500,000 = 0.1

The ROA is a ratio to calculate if the investment in assets made by the company is generating enough income.

he need to invest $13,241 each year to achieve his goal

Explanation:

Target Saving Amount = Future value = F = $1,500,000

Number of years = n = 30 years

Inyterest rate = r = 8% = 0.08

Invetment to be made = P = ?

Use following formula to calculate Invetment amount

F = P x ([1 + r]^n - 1 )/r

P = F / ([1 + r]^n - 1 )/r

P = 1,500,000 / ([1 + 0.08]^30 - 1 )/0.08

P = 1,500,000 / 113.2832

P = 13241.15