Calculate the return on assets for a hunting outfitter store that has total assets of $350,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and net profit of $23,000.
A) 26.5 percent
B) 18.3 percent
C) 6.6 percent
D) 25.0 percent
E) 8.2 percent

Question

Quizplus · Accepted Answer

Return on assets (ROA) is calculated as Net Profit divided by Total Assets. Here, ROA = $23,000 / $350,000 = 0.0657 or 6.6 percent.

Calculate the Return on Assets for a Hunting Outfitter Store