The following information is from the 2017 annual report of Weber Corporation, a company that supplies...

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The following information is from the 2017 annual report ofWeber Corporation, a company that supplies manufactured parts tothe household appliance industry. Average total assets $ 24,500,000Average interest-bearing debt 10,000,000 Average other liabilities2,250,000 Average shareholders' equity 12,250,000 Sales 49,000,000Interest expense 800,000 Net income 2,450,000 Required: ComputeWeber Corporation’s return on assets (ROA) for 2017 using acombined federal and state income tax rate of 40% where needed.Compute the profit margin and asset turnover components of ROA for2017. Weber’s management believes that various business initiativeswill produce an asset turnover rate of 2.25 next year. If theprofit margin next year is unchanged from 2017, what will be thecompany’s ROA?

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	Return on Assets (ROA)
	Return on assets= Net income/Average totalassets

A	Net Income	$2,450,000
B	Average TotalAssets	$24,500,000
C=A/B	Return on Assets (ROA)	0.1
	Return on Assets (ROA)(percentage)	10%

	Profit margin=Net Income/Sales

C	Net Income	$2,450,000
D	Sales	$49,000,000
E=C/D	Profit Margin	0.05
	Profit Margin(Percentage)	5%

	Asset Turnover=Sales/Average Total assets
F	Sales	$49,000,000
G	Average TotalAssets	$24,500,000
H=F/G	Asset Turnover	2

I	Asset Turnover next year=(Sales/Total Assets)	2.25
J	Profit margin next year=Net income/Sales=	0.05

	ROA (Return on assets) next year:
	Net Income/Totalassets=(Net Income/Sales)*(Sales/TotalAssets)
ROA=I*J	ROA (Return on assets) next year:	0.1125
	ROA (Return on assets) next year(Percentage)	11.25%

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The following information is from the 2017 annual report ofWeber Corporation, a company that supplies manufactured parts tothe household appliance industry. Average total assets $ 24,500,000Average interest-bearing debt 10,000,000 Average other liabilities2,250,000 Average shareholders' equity 12,250,000 Sales 49,000,000Interest expense 800,000 Net income 2,450,000 Required: ComputeWeber Corporation’s return on assets (ROA) for 2017 using acombined federal and state income tax rate of 40% where needed.Compute the profit margin and asset turnover components of ROA for2017. Weber’s management believes that various business initiativeswill produce an asset turnover rate of 2.25 next year. If theprofit margin next year is unchanged from 2017, what will be thecompany’s ROA?