In January 2010 the Status Quo Company was formed. Total assets were $500,000, of which $300,000 consisted of capital assets. Status Quo uses straight-line amortization, and in 2010 it estimated its capital assets to have useful lives of 10 years. Aftertax income has been $26,000 per year each of the last 10 years. Other assets have not changed since 2010. a. Compute ROA at year-end for 2010, 2012, 2015, 2017, and 2019. (Round the final answers to 2 decimal places.) 2010 2012 2015 2017 2019 Return on assets % % % % %

In January 2010 the Status Quo Company was formed. Total assets were $500,000, of which $300,000 consisted of capital assets. Status Quo uses straight-line amortization, and in 2010 it estimated its capital assets to have useful lives of 10 years. Aftertax income has been $26,000 per year each of the last 10 years. Other assets have not changed since 2010. a. Compute ROA at year-end for 2010, 2012, 2015, 2017, and 2019. (Round the final answers to 2 decimal places.) 2010 2012 2015 2017 2019 Return on assets % % % % %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 6CE

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