The net income of a company is $175,000. The average book value of the company's assets is $1,300,000. The return on total assets would be
A) 20.00%.
B) 7.43%.
C) 600.00%.
D) 13.46%.

Name: The net income of a company is $175,000. The average book value of the company's assets is $1,300,000. The return on total assets would be A) 20.00%. B) 7.43%. C) 600.00%. D) 13.46%.
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Question

Quizplus · Accepted Answer

Return on total assets (ROA) = Net income / Average total assets
ROA = $175,000 / $1,300,000 = 0.1346 or 13.46%

The Net Income of a Company Is $175,000