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SL Accounting Question
#1
Ok, i feel stupid. I have worked in accounts payable and receivable for over a decade and never have i seen something like this. How is "fourteen hundred million" even a number? I didn't even know what numbers to use to calculate  the ROA because I had no idea what they meant by $1400 million. Wouldn't that actually be in the billions? Can anyone explain this please?

"Reebok's net income of $117 million and average assets of $1,400 million results in a return on assets of 8.36%."

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#2
I seem to remember reading British stuff that had numbers in that type of format. Yes, unless it was a typo, it would be 1.4 billion to us ungrateful colonials :-P
Working On:  WGU MS-ITM (start late 2019), GA Tech OMSC (start late 2020?)
Completed:  WGU BSCSIA (started 10/1/2018, finished 01/11/2019)
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#3
They are showing both figures ($117 and $1400) in the same units (millions) for comparison purposes. It's easier (and quicker) this way to see how much Reebok's net income is relative to their assets. Or at least that's what they hoped it would be.  Smile
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#4
(07-06-2018, 06:50 PM)Sapientes Wrote: They are showing both figures ($117 and $1400) in the same units (millions) for comparison purposes. It's easier (and quicker) this way to see how much Reebok's net income is relative to their assets. Or at least that's what they hoped it would be.  Smile

Thank you both... I thought I was actually going crazy.

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