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I hope you can help me...

Dear daughter is at college and e-mails me this questions regarding ROA. And I think, no problem, I work in accounting all day, took accounting 20 gazillion years ago.

But then, cr*p, I didn't know the answer to this one.

Find the ROA on the following scenario:

Consolidated Operations

2006 2005 2004

2787 2229 2999
No. of Recommendations: 0
(didn't finish sorry before I hit the send key by accident)

I hope you can help me...

Dear daughter is at college and e-mails me this questions regarding ROA. And I think, no problem, I work in accounting all day, took accounting 20 gazillion years ago.

But then, cr*p, I didn't know the answer to this one.

Find the ROA on the following scenario:

Consolidated Operations

Year 2006 2005 2004

Net income 2787 2229 2999

(I'm thinking yeah, what's the problem)

And then the balance sheet has dates of

February 3, 2007 January 28, 2006

Assets 27,249 34996

The periods don't match up. What gives? How can you do averages when the periods don't mesh.

What am I missing besides the obvious?

Thank you
Nero
No. of Recommendations: 0
Find the ROA on the following scenario:

Consolidated Operations

Year 2006 2005 2004

Net income 2787 2229 2999

(I'm thinking yeah, what's the problem)

And then the balance sheet has dates of

February 3, 2007 January 28, 2006

Assets 27,249 34996

The periods don't match up. What gives? How can you do averages when the periods don't mesh.

What am I missing besides the obvious?

The company is probably a retail operation using a 52-53 week fiscal year. The dates match up -- F/Y 2006 was 1/29/06-2/3/07. F/Y 2005 was 1/29/05-1/28/06.

Ira
No. of Recommendations: 1
The company is probably a retail operation using a 52-53 week fiscal year. The dates match up -- F/Y 2006 was 1/29/06-2/3/07. F/Y 2005 was 1/29/05-1/28/06.

I agree. The company I work for uses 52/53 week fiscal years (last Friday in Jan is year end).

aly