Return on total assets A company reports the following income statement and balance sheet information for...

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Question

Return on total assets A company reports the following income statement and balance sheet information for...

Return on total assets

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

Net income	$424,000
Interest expense	80,000
Average total assets	4,200,000

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

business accounting

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Answer 1

Answer #1

Return on total assets

= (Net income + interest expense) /Average total assets

= (424,000+80,000)/4,200,000

= 12%

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Answer 2

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