Question Connor Tax Services reported net income of £6,500. Listed below is the classified statement of financial position for connor Tax Services for 2020. Required: Calculate CONNOR Tax Service's Return on Assets. Show all your calculations!

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 98.3C
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Connor Tax Services reported net income of £6,500. Listed below is the classified statement of financial position for connor Tax Services for 2020.

Required:

Calculate CONNOR Tax Service's Return on Assets. Show all your calculations!

CONNOR TAX SERVICES
Statement of Financial Position
December 31, 2020
Assets
Property, plant, and equipment
Equipment
£34,400
Less: Accumulated depreciation
6,000 £28,400
Current assets
9,780
14,200
Accounts receivable
Cash
Total current assets
£23,980
Total assets
£52,380
Equity and Liabilities
Equity
Copy imed earmings Can College of the da o st. 201
College of the da Fast. 201
Retained earnings
24,400 £44,400
Non-current liabilities
Notes payable
1,800
Current liabilities
£4,100
2,080
Accounts payable
Salaries and wages payable
Total current liabilities
£6180
Total liabilities
£7,980
Total equity and liabilities
£52,380
Transcribed Image Text:CONNOR TAX SERVICES Statement of Financial Position December 31, 2020 Assets Property, plant, and equipment Equipment £34,400 Less: Accumulated depreciation 6,000 £28,400 Current assets 9,780 14,200 Accounts receivable Cash Total current assets £23,980 Total assets £52,380 Equity and Liabilities Equity Copy imed earmings Can College of the da o st. 201 College of the da Fast. 201 Retained earnings 24,400 £44,400 Non-current liabilities Notes payable 1,800 Current liabilities £4,100 2,080 Accounts payable Salaries and wages payable Total current liabilities £6180 Total liabilities £7,980 Total equity and liabilities £52,380
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