Ridgetop Corporation Reported the Following Amounts on Its Balance Sheet

question 21

Short Answer

Ridgetop Corporation reported the following amounts on its balance sheet at December 31,2011:
$$\begin{array} { l r } \text { Total current assets } & \$ 1,800,000 \\\text { Total long-term assets } & 900,000 \\\text { Total current liabilities } & 1,300,000 \\\text { Total long-term liabilities } & 500,000 \\\text { Total equity } & 900,000 \\\text { Net income } & 100,000\end{array}$$ On January 1,2011,total assets were $2,000,000,total liabilities were $1,200,000 and total equity was $800,000.Calculate Ridgetop's return on assets.

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Definitions:

Unstructured Problems

Challenges or questions that do not have an easy or straightforward solution, often requiring unique or creative approaches.

Intellectual Capital

The intangible assets of an organization, encompassing knowledge, skills, innovation, and relationships that contribute to its competitive advantage.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, often leading to greater sales or margins.

Organisational Training

Programmes and activities designed to improve the skills, knowledge, and competencies of employees within an organization.