Textbook Problem

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 on the previous page. 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. 1. Calculate the average total assets.
2. 2. Calculate the return on assets.