McAlister Repair Service Had Net Income for the Year of $125,000

question 261

Essay

McAlister Repair Service had net income for the year of $125,000. In addition, the balance sheet reports the following balances:
$$\begin{array} { | l | r | r | } \hline & \text { Jan. 1, 2018 } & \text { Dec. 31, 2018 } \\\hline \text { Accounts Receivable } & \$ 5,600 & \$ 14,200 \\\hline \text { Accounts Payable } & 12,000 & 9,500 \\\hline \text { Building } & 125,000 & 125,000 \\\hline \text { Cash } & 37,500 & 35,000 \\\hline \text { Office Furniture } & 25,000 & 50,000 \\\hline \text { Office Supplies } & 3,200 & 1,500 \\\hline \text { Notes Payable } & 60,000 & 75,000 \\\hline \text { Total Stockholders' Equity } & 124,300 & 141,200 \\\hline\end{array}$$ Calculate the return on assets (ROA) for McAlister Repair Service for the year ending December 31, 2018.

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Definitions:

Justice

A fundamental moral concept focusing on the fairness, righteousness, and equality in the distribution of resources, opportunities, and treatment within society.

Ethics

Moral principles that guide our behavior.

Moral Question

An issue that involves judgments about what is right and wrong, ethical or unethical.

Business Profits

The monetary gains made by a business after subtracting all expenses from its total revenue.