A business realizes a net profit of $3 million and a return on assets of 6%.The total assets of the business will be ________.
A)$5 million
B)$20 million
C)$18 million
D)$50 million
E)$36 million

Question

Quizplus · Accepted Answer

The return on assets (ROA) is calculated as Net Profit / Total Assets. Given a net profit of $3 million and ROA of 6%, the total assets can be calculated as $3 million / 0.06 = $50 million.

A Business Realizes a Net Profit of $3 Million and a Return