afari File Edit View ndow Help Connect https newconnectmhed

afari File Edit View ndow Help Connect + https newconnect.mheducation.com container ti&context; id contextids.custom, action C Sites Web Slice Gallery uiz Seved Help Save & Exit Submit Flitter reported net income of $27,000 for the past year. At the beginning of the year the company had $219,000 in assets and $69,000 in liabilities. By the end of the year, assets had increased to $319,000 and liabilities were $94,000. Calculate its return on assets Multiple Choice 12.3% 274%. 361%. Prev 10, 20111 Next>

Solution

Calculate return on total assets :

Return on total assets = net income*100/Beginning total assets

= 27000*100/219000

Return on total assets = 12.3%

so answer is a) 12.3%