In 2010 Banko Corporation's financial statements included the following information: Banko's return on assets (ROA) for 2010 was

Question

In 2010 Banko Corporation's financial statements included the following information:  Banko's return on assets (ROA) for 2010 was

Quizplus · Accepted Answer

The formula for calculating ROA is net income divided by total assets. Using the information provided in the financial statements, Banko's net income was $78,000 and their total assets were $404,000. Dividing $78,000 by $404,000 gives a ROA of 0.193 or 19.3%. Therefore, the correct answer is D.

In 2010 Banko Corporation's Financial Statements Included the Following Information