Answer:
Return on Total asset is 16.18%.
Explanation:
Total Assets, December 31, 2019 $195,000
Total Assets, December 31, 2018 $151,000 For Year Ended December 31, 2019
Interest Expense $7,000
Net Income $28,000
Return on Total Asset = Net Income / Average total Assets
Return on Total Asset = $28,000 / $173,000
Return on Total Asset = 0.1618 = 16.18%
Average total Assets = ( Beginning Assets balance + Ending total Assets balance ) / 2
Average total Assets = ( 151,000 + 195,000 ) / 2 = $173,000
