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

question 22

Essay

McAlister Repair Service had net income for the year of $125,000.In addition,the balance sheet reports the following balances:
$$\begin{array} { | l | r | r | } \hline & \text { Jan. 1, 2018 } & \text { Dec. 31, 2018 } \\\hline \text { Accounts Receivable } & \$ 5,600 & \$ 14,200 \\\hline \text { Accounts Payable } & 12,000 & 9,500 \\\hline \text { Building } & 125,000 & 125,000 \\\hline \text { Cash } & 37,500 & 35,000 \\\hline \text { Office Furniture } & 25,000 & 50,000 \\\hline \text { Office Supplies } & 3,200 & 1,500 \\\hline \text { Notes Payable } & 60,00 \mathrm { O } & 75,000 \\\hline \text { Total Owner's Equity } & 124,300 & 141,200\\\hline\end{array}$$ Calculate the return on assets (ROA)for McAlister Repair Service for the year ending December 31,2018.

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Definitions:

Restricting Payment

Implies conditions or limitations placed on the distribution or release of funds.

Special Indorsement

A signature on a negotiable instrument, such as a check, that specifies the person to whom the instrument is to be payable, thereby restricting further transfer.

Pay to the Order

A phrase written on checks or drafts instructing the financial institution to pay the specified amount to the individual or entity named.

Trust

A fiduciary relationship in which one party, known as the trustee, holds property on behalf of another party, known as the beneficiary.