AMT.Inc.'s sales revenue for this quarter is $2,000,000.It incurred $1,200,000 in total costs.The total asset of the company is $6,000,000.What the return on assets (ROA)?

Question

Quizplus · Accepted Answer

ROA can be calculated by dividing net income by total assets. 
Net Income = Sales Revenue - Total Costs = $2,000,000 - $1,200,000 = $800,000 
ROA = Net Income/Total Assets = $800,000/$6,000,000 = 0.1333 or 13.33%

AMTInc'S Sales Revenue for This Quarter Is $2,000,000