Doherty Corporation had net income of $30,000, net sales of $1,000,000, and average total assets of $500,000. Its return on total assets is:
A) 3%
B) 200%
C) 6%
D) 17%
E) 1.5%

Name: Doherty Corporation had net income of $30,000, net sales of $1,000,000, and average total assets of $500,000. Its return on total assets is: A) 3% B) 200% C) 6% D) 17% E) 1.5%
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Question

Quizplus · Accepted Answer

Return on Total Assets (ROTA) is calculated as Net Income divided by Average Total Assets. Here, it is $30,000 / $500,000 = 0.06 or 6%.

Doherty Corporation Had Net Income of $30,000, Net Sales of $1,000,000