Matured Water Services had net income for the month of October of $ 50 comma 880. Assets as of the beginning and end of the month totaled $ 362 comma 000â, and $ 486 comma 000â, respectively. Calculate Matured Waterâ Services' ROA for the month of October.

12%

Explanation:

Given that,

Net income = $50,880

Asset at the beginning = 362,000

Asset at the end = 486,000

Average total assets:

= (Asset at the beginning + Asset at the end) : 2

= (362,000 + 486,000) : 2

= $424,000

Therefore,

ROA = Net income : Average total assets

= $50,880 : $424,000

= 0.12 or 12%

Therefore, the Matured Water Services' ROA for the month of October is 12%.