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Citrus2011 [14]
3 years ago
12

Arrows net income of $120 million and average assets $1700 results in a return on assets of 7.06%.

Business
2 answers:
Masja [62]3 years ago
5 0
True

-if you would please mark brainliest Bc I need to move up! Thanks and if you have any addition questions just inbox me!
Anarel [89]3 years ago
4 0

Answer:

The answer to the affirmation is:

  • <u>True</u>.

Explanation:

To identify the percentage return on assets, <u>you must compare as a percentage the total average of the assets (which corresponds to 100% with Arrow's net income during that period of time</u> (which is possibly one year), by of a simple rule of three, where:

  • $ 1.7 billion = 100%
  • $ 120 million = X

We proceed to calculate the value of X:

  • X = (120 * 100) / 1700
  • X = 12000/1700
  • X = <u>7.06% </u>

So the statement is true.

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