Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets.This year,the invested assets totaled $475,000,and net income was $275,000.What is the rate of return on assets?
A) 57.9%
B) 172.3%
C) 5.0%
D) 115.0%

Question

Quizplus · Accepted Answer

The rate of return on assets is calculated by dividing the net income by the total invested assets and then multiplying by 100 to get a percentage. So, $275,000 / $475,000 * 100 = 57.9%.

Tom's Tool Factory Is an Investment Center and Is Responsible