Selected current year company information follows Net income

Selected current year company information follows: Net income Net sales Total liabilities, beginning-year Total liabilities, end-of-year Total stockholders\' equity, beginning-year Total stockholders\' equity, end-of-year $17,153 724,855 95,932 115,201 210,935 139,851 The return on total assets is (Do not round intermediate calculations.): 0 6.11%. 0 2.36%. o 2.84% 2.37%. 2.58%.

Solution

Total assets=Total liabilities+Total equity

Hence

total assets at beginning=(95932+210935)=$306867

Total assets at end=(115201+139851)=$255052

Hence average assets=(306867+255052)/2=$280959.5

Hence ROA=Net income/Average total assets

=(17153/280959.5)

which is equal to

=6.11%(approx).