The Following Information Is Available from the Financial Statements of Cosmotropolis

question 30

Short Answer

The following information is available from the financial statements of Cosmotropolis: $\begin{array}{lrrr}&2009&2010&2011\\\text { Total assets, December } 31 & \$ 341,585 & \$ 395,412 & \$ 922,357 \\\text { Net income } & 35,550 & 49,512 & 68,149\end{array}$
What is Cosmotropolis' return on total assets for 2010?

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Definitions:

Accounting Equation

The fundamental equation stating that Assets = Liabilities + Equity, which is the basis of the double-entry bookkeeping system.

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit but not yet paid.

Rent Expense

An expense incurred by a company for the use of a property or equipment.

Repair and Maintenance

Expenses incurred to keep an asset in working condition or to restore it to its desired condition, which do not extend the asset's useful life significantly.