Matured water services had net income for the month of october of $ 50 comma 880. assets as of the beginning and end of the month totaled $ 362 comma 000â, and $ 486 comma 000â, respectively. calculate matured waterâ services' roa for the month of october.

12%

Explanation:

Given that,

Net income = $50,880

Asset at the beginning = 362,000

Asset at the end = 486,000

Average total assets:

= (Asset at the beginning + Asset at the end) ÷ 2

= (362,000 + 486,000) ÷ 2

= $424,000

Therefore,

ROA = Net income ÷ Average total assets

        = $50,880  ÷ $424,000

        = 0.12 or 12%

Therefore, the Matured Water Services' ROA for the month of October is 12%.

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