In 2016, Bubble Inc. had net income of $500,000, assets of $5,000,000, sales of $2,000,000, and debt of 2,000,000. In 2017, Bubble Inc. had net income of $600,000, assets of $7,000,000, sales of $1,300,000, and debt of 2,000,000. Did Bubble Inc's return on assets improve from 2016 to 2017?
A) No
B) Yes
C) Stayed the same
D) Not enough information to answer

Question

Quizplus · Accepted Answer

2016 ROA: 500,000/5,000,000 = 10%
2017 ROA: 600,000/7,000,000 = 8.6%