Response to the following:
1. Calculate return on assets
In 2014, FPT, Inc., reported $200 million in sales, $15 million in net income, and average total assets of $83 million. What is FPT's return on assets in 2014?
2. Calculate return on assets
Moore Optical, Inc., provides a full line of designer eyewear to optical dispensaries. Moore reported the following information for 2014 and 2013:
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2014
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2013
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Sales revenue...................................
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$500,000
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$450,000
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Net income.......................................
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$ 37,500
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$ 33,600
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Average total assets........................
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$250,000
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$240,000
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Compute return on assets (ROA) for 2014 and 2013. Using the DuPont model, identify the components and state whether each improved or worsened from 2013 to 2014.