Answer:
6.03%
Explanation:
Calculation for the return on total assets
First step will be to find the assets at the beginning using this formula
Beginning year Assets =Beginning Total liabilities + Beginning Stockholders' equity
Let plug in the formula
Beginning year Assets=$101,932 + $216,935
Beginning year Assets=$318,867
Second step is to find the end of the year asset using this formula
End of the year assets = Ending Total liabilities + Ending Stockholders' equity
Let plug in the formula
End of the year assets=$121,201 + $148,851
End of the year assets = $270,052
Last step is to calculate for the return on total assets using this formula
Return on total assets = Net income/Average of total assets,
Let find the Total asset averages
Using this formula
Total asset averages=(Beginning year Assets+End of the year assets)/2
Let plug in the formula
Total asset averages($318,867 + $270,052)/2 Total asset averages=$588,919/2
Total asset averages= $294,459.50
Hence,
Return on total assets = Net income/Average of total assets
Return on total assets=$ 17,753/294,459.50
Return on total assets=0.0603
Return on total assets=6.03%
Therefore the return on total assets will be 6.03%
