Unit 8 homework, need help!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi everyone,<BR><BR>I'm doing CARE 4 practice activities for homework and one of the questions ask to work out :<BR>Return on net assets?<BR><BR>Does any one know the formula for this?<BR><BR>Thanks<BR>Sally

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 8 homework, need help!

    Could this be Asset Turner eg Sales/Net Assets<BR><BR>Net Assets equals Fixed Assets plus Current Assets minus Current Liabilities<BR><BR>Measurers efficiency in using assets to generate sales, does need comparisons, some industries have a high ratio such as supermarkets.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 8 homework, need help!

    always remember when it says return on ........<BR><BR>it means that profit is a part of the formula<BR><BR>here they are asking for return on net assets so yo u need to know the profit and net assets<BR><BR>the formula is<BR><BR>net income or net profit divided by net assets<BR><BR>net assets = fixed assets + net working capital <BR><BR>net working capital = current assets less current liabilites.<BR><BR>dont have ur question, so am not sure which words are used n the question<BR>hope i havent confused you<BR><BR>simply<BR><BR>profit divided by net assets.<BR>

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