Calculate net income from the following information: ROA = 35%
Sales = $250,000
Current assets = $30,000
Fixed assets = $70,000
A) $87,500
B) $35,000
C) $10,500
D) $24,500
E) $15,000

Question

Quizplus · Accepted Answer

Net income can be calculated using the formula: Net Income = ROA * Total Assets. Total Assets = Current Assets + Fixed Assets = $30,000 + $70,000 = $100,000. Therefore, Net Income = 35% * $100,000 = $35,000.

Calculate Net Income from the Following Information: ROA = 35