Question

A company reports the following income statement and balance sheet information for the current year:
Net income $216,060
Interest expense 38,130
Average total assets 2,290,000
Determine the return on total assets. If required, round the answer to one decimal place.

Answer 1

Answer:

9.4

Step-by-step explanation:

The net income for theis company is $216,060

The average total assets is 2,290,000

Therefore the return on total assets is

= 216,060/2,290,000

= 0.0943×100

=9.4