AMT.Inc.'s net income for this quarter is $500,000.The publicized return on assets (ROA)is 34.5%.Estimate the firm's total asset to the closet possible.

Question

Quizplus · Accepted Answer

To estimate the firm's total assets, use the formula: ROA = Net Income / Total Assets. Rearranging gives Total Assets = Net Income / ROA. Plugging in the values: Total Assets = $500,000 / 0.345 = $1,449,275.36, which is closest to $1,500,000.

AMTInc'S Net Income for This Quarter Is $500,000