The following amounts were taken from the financial statements of Leaf Company: $\begin{array}{lrr}
&2017&2016\
\text { Total assets } & \$ 800,000 & \$ 880,000 \
\text { Net sales } & 720,000 & 650,000 \
\text { Gross profit } & 352,000 & 320,000 \
\text { Net income } & 126,000 & 117,000 \
\text { Weighted average number of common shares outstanding } & 90,000 & 90,000 \
\text { Market price of common stock } & \$ 35 & \$ 39
\end{array}$ The return on assets ratio for 2017 is
A) 15.8%.
B) 15%.
C) 14.3%.
D) 14.5%.

Question

Quizplus · Accepted Answer

Return on assets ratio = Net income/Total assets
For 2017: 
Net income = $195,000 
Total assets = $1,300,000 
Return on assets ratio = $195,000/$1,300,000 = 0.15 or 15%

The Following Amounts Were Taken from the Financial Statements of Leaf