Answer:
d. $50,000.
In order to find the net income we will multiply the return on assets with average total assets. We need to find average total assets because the firm had different beginning and ending assets therefore we need to take an average of both the numbers. Average assets= ( Beginning assets + Ending assets)/2= 450,000+550,000= 1,000,000/2= 500,000
Average assets = 500,000
Net income = Average assets * Return on assets
Net income = 500,000* 0.1
Net income is 50,000
Hidden Valleys Net income for the year was $50,000
Explanation:
