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3 years ago

13

Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $30

0,000. Compute its return on assets.

1 answer:

Scrat [10]3 years ago

7 0

Answer:

15.64%

Explanation:

Return on Assets = $\frac{Net Income}{Average Total Assets}$

= $\frac{43,000}{(250,000 + 300,000)/2} = \frac{43,000}{275,000}$

= 0.1564

= 15.64%.

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