The following is selected data for Inland Industries:
The return on assets for 2016 was: (Round your final answer two decimal places, X.XX%.)
A)28.89%.
B)18.34%.
C)14.64%.
D)18.11%.

Question

The following is selected data for Inland Industries: 
The return on assets for 2016 was: (Round your final answer two decimal places, X.XX%.)
A)28.89%. 
B)18.34%. 
C)14.64%. 
D)18.11%.

Quizplus · Accepted Answer

The given data suggests to calculate the ratio of net income to total assets for the year 2016. Using the given data, we have:
Net income = $275,000
Total assets = $1,878,000
Therefore, Return on Assets (ROA) = (Net Income / Total Assets) * 100
ROA = ($275,000 / $1,878,000) * 100
ROA = 14.64%
Therefore, the correct answer is C, 14.64%.

The Following Is Selected Data for Inland Industries