Question

Excerpts from Hulkster Company's December 31, 2018 and 2017, financial statements are presented below:

	2018				2017
Accounts receivable	$	56,000			$	44,000
Merchandise inventory		36,000				51,000
Net sales		240,000				230,000
Cost of goods sold		130,000				116,000
Total assets		441,000				413,000
Total shareholders' equity		256,000				233,000
Net income		44,500				36,000

Hulkster's 2018 return on assets is (rounded):

Multiple Choice

54.4%.

10.4%.

17.4%.

17.4%.

9.2%.

54.4%.

Answer 1

Answer is 10.4%
Return on Assets for 2008
Total assets for 2008			441000
Total assets for 2007			413000
Average Assets			427000
Net income			44500
Divide: Average Assets			427000
Return on Assets			10.42%