What component is included in calculating the average assets for ROA when bonds are issued?

When calculating the average assets for Return on Assets (ROA), it is essential to consider the entire context of the assets over a specific period. By including both beginning assets and end assets, along with any proceeds from the issuance of bonds, you arrive at a comprehensive average that more accurately reflects the company's asset base during the timeframe of interest.

Including only beginning assets or only end assets would provide a skewed view, as it wouldn't account for changes in the asset base throughout the period. Proceeds from bonds are an increase in the asset base, and thus they should also be factored into the calculation. This approach ensures that any new investments or capital raised through bond issuance are considered, leading to a more accurate assessment of how efficiently the company is using its assets to generate income.

Using the total of beginning assets, end assets, and the proceeds captures the full picture of the resources available to the company and supports a more precise determination of ROA as it relates to the profitability derived from those assets.