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18 August, 07:50

Kyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is $250,000. In its most recent year, Kyzera reported net income of $65,000 on revenues of $475,000. Required:

1. What is Kyzera's return on assets?

2. Does return on assets seem satisfactory for Kyzera given that its competitors average a 12% return on assets?

3. What are total expenses for Kyzera in its most recent year?

4. What is the average total amount of liabilities plus equity for Kyzera?

The average total assets for kyzera is 250

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  1. 18 August, 07:52
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    1. Kyzera's return on assets

    Return on asset = (Net income / Average total asset) * 100

    Return on asset = (65,000 / 250,000) * 100 = 26%

    2.

    26% return on assets seems satisfactory for Kyzera as compared to competitor's average return on asset 12% return on assets. It's about 117% higher than the competitor.

    3. Total expenses for Kyzera in its most recent year

    Expenses = Revenue - Net Income

    Expenses = 475,000 - 65,000

    Expenses = 410,000

    4. Average total amount of liabilities plus equity for Kyzera

    As we Know:

    Average total Assets = Average total amount of liabilities plus equity

    Average total amount of liabilities plus equity = $250,000
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