A company had average total assets of $982,450 and net income of $190,700, and reports various segment information. Segment A had average total assets of $437,800 and segment operating income of $98,230. Segment B had average assets of $151,200 and segment operating income of $16,190. Calculate the segment return on assets for Segment B
A) 19.4%.
B) 22.4%.
C) 26.1%.
D) 10.7%.

Question

Quizplus · Accepted Answer

The segment return on assets (ROA) for Segment B is calculated as the segment operating income divided by the average total assets for the segment. For Segment B, this is $16,190 / $151,200 = 0.107 or 10.7%.

A Company Had Average Total Assets of $982,450 and Net