Answer:
For the tear 2019, net income is 40,000
Beginning of the year 2019, asset of the S are 200,000
Ending of the year 2019, asset of the S are 300,000
Average asset for 2019= Beginning assets + Closing assets / 2
Average asset for 2019= 200,000 + 300,000 / 2
Average asset for 2019= $250,000
Return on assets = Net income / Average assets * 100%
= 40,000 / 250,000 * 100
=16%
Thus, the return on assets is 16%
Conclusion: If the average return of assets of the competitors are 11%, It means S uses the assets efficient manner, so performance of the S is very good ad return of the S is higher than competitors on asset
