Question

A company reports the following income statement and balance sheet information for the current year:

Answer 1

Answer:

10.1%

Explanation:

Given the above information, return on total asset is computed as;

Return on total asset = Net income / Average total assets

Net income = $24,000

Average total assets = $4,200,000

Therefore,

Return on total assets = $424,000 / $4,200,000

Return on total assets = 10.1%

Answer 2

Answer:

10.1%

Explanation:

Determine the return on total assets. (Round percentages to one decimal place.) 10.1%