Question

Assume Worldwide Cleaning Service had net income of $ 900 for the year. Worldwide Cleaning​ Service's beginning and ending total assets were $ 4 comma 600 and $ 4 comma 400​, respectively. Calculate Worldwide Cleaning​ Service's return on assets for the year

Answer 1

Answer:

return on assets = 20%

Explanation:

given data

net income = $900

beginning total assets = $4600

ending total assets = $4400

solution

we get here return on assets that is express as

return on assets = $\frac{net\ income}{average\ assets}$ × 100   ............1

here average assets will be

average assets = $\frac{4600+4400}{2}$

average assets = $4500

put here value we get

return on assets = $\frac{900}{4500}$ × 100

return on assets = 20%