Question

A fire has destroyed a large percentage of the financial records of the strongwell co. you have the task of piecing together information in order to release a financial report. you have found the return on equity to be 13.8 percent. sales were $979,000, the total debt ratio was 0.42, and total debt was $548,000. what is the return on assets? 6.92 percent 8.00 percent 8.45 percent 9.03 percent 9.29 percent

Answer 1

Return on assets = .138/(1+ .72414) = .08, or 8 percent.