In 2017, Elephant Corporation's financial statements included the following information: To one decimal, Elephant's return on assets (ROA)for 2017 was
A)21.0%.
B)19.3%.
C)17.2%.
D)0.99%.

Question

In 2017, Elephant Corporation's financial statements included the following information:  To one decimal, Elephant's return on assets (ROA)for 2017 was
A)21.0%. 
B)19.3%. 
C)17.2%. 
D)0.99%.

Quizplus · Accepted Answer

To calculate ROA, divide net income by total assets. Therefore,
ROA = (Net Income / Total Assets) x 100
= (121,000 / 627,000) x 100
= 19.3% 
Therefore, the correct answer is B) 19.3%.

In 2017, Elephant Corporation's Financial Statements Included the Following Information