Ask Experts Questions for FREE Help !
Ask
    uskrxm40's Avatar
    uskrxm40 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 25, 2008, 12:33 PM
    ROA - Writing off 25% of inventory
    How will writing off 25% of inventory during a poor financial year affect following years ROA ratio?
    SeanF138's Avatar
    SeanF138 Posts: 11, Reputation: 2
    New Member
    		  
    #2

    Feb 26, 2008, 10:08 AM
    The equation for ROA=Net Income/Total Assets. So if you write off 25% of your assets this will cause your Total Assets to decrease and cause your ROA to increase.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Writing a Novel [ 3 Answers ]

Hi, Im new to this... please help me. I would like to start writing a novel. Where do I start? Im in the USA, CA, and would like help and assistance Deliah

ACCOUNTING(ROA) return of non-current assets [ 2 Answers ]

Hi, Please help me clear my confusion My question is, I return a damaged furniture worth of 680 which I originally bought for 2680. What account will be credited and what account will be debited?

Novel writing [ 4 Answers ]

I'm 100,000 words into my story and I've got a nagging feeling it's too slow. The story takes place several years after the country was hit by drought and how people are still suffering from its effects. The maincharacter is a seventeen year old girl who was rescued from a lap dancing club and...

View more questions Search