For the year ended December 31, 2014, Akito Co. has net sales of $1,000,000 and profit of $290,000. Total assets on January 1, 2014 were $1,750,000 and total assets at December 31, 2014 are $1,245,000. Akito's return on assets for 2014 is
A) 19.4%.
B) 23.3%.
C) 66.8%.
D) 80.3%.

Question

Quizplus · Accepted Answer

Return on assets = Net income / Average total assets= 290,000 / ((1,750,000 + 1,245,000) / 2)= 290,000 / 1,497,500= 19.36%

For the Year Ended December 31, 2014, Akito Co