Based on the following information, if managers want to earn
a 12% ROA, how much profit must the company generate?
ROA= annual net income/average total assets
Average total assets =( total assets at the beginning of year + total assets at the end of the year)/2
= 1260000/2= 630000
12%=annual net income/630000
Annual net income= 630000*12/100
Annual net income=$75,600
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