Question

The return on total assets is computed by dividing net sales by average total assets. net income by ending total assets. net income by average total assets. net sales by ending total assets.

Answer 1

Answer:

The return on total assets is computed by dividing net income by ending total assets

Explanation:

Here in this question, we are interested in knowing the mathematical formula that can be used to calculate the return on total assists

Mathematically, to calculate the return on total assets, two factors are needed.

These factors are;

i) Company’s net income

ii) Company’s assets total value

By using a specific period of time ( quarterly, annually etc); we can divide i by ii

So what we mean here is that;

Return on total assets = Net income of a company over a specific time period divided by the total asset value of the company over that specific period of time