Using the following data for Stevenson Industries compute the return on assets. $\begin{array}{lr}
\text { Net Income } & \$ 180,000 \
\text { Total Assets } 12 / 31 / 22 & 2,410,000 \
\text { Total Assets } 12 / 31 / 21 & 1,980,000 \
\text { Net Sales } & 250,000
\end{array}$
A)7.5%
B)10.4%
C)8.2%
D)11.4%

Question

Quizplus · Accepted Answer

Return on Assets (ROA) is calculated as Net Income divided by Average Total Assets. Average Total Assets = (2,410,000 + 1,980,000) / 2 = 2,195,000. ROA = 180,000 / 2,195,000 = 0.082 or 8.2%.

Using the Following Data for Stevenson Industries Compute the Return