Question

A company has total revenue of $195,000 and total assets on its balance sheet of $2,015,000. What is the return on assets for this company?

Answer 1

Answer:

9.67%

Explanation:

A company has a total revenue of $195,000

The total assets is $2,015,000

Therefore the return on assets for the company can be calculated as follows

= 195,000/2,015,000

= 0.0967×100

= 9.67%

Hence the return on assets is 9.67%