Question

A company had net income of $2,660,000, net sales of $25,000,000, and average total assets of $8,000,000. Its return on total assets equals

Answer 1

Answer:

33.25%

Explanation:

Calculation for what Its return on total assets equals

Using this formula

Return on total assets =Net income/Average total assets *100

Let plug in the formula

Return on total assets =$2,660,000/$8,000,000*100

Return on total assets =0.3325*100

Return on total assets=33.25%

Therefore what Its return on total assets equals is 33.25%