The Corner Market had annual sales of $700,000 and total assets of $605,000. What is the return on assets if the profit margin is 8%?

Name: The Corner Market had annual sales of $700,000 and total assets of $605,000. What is the return on assets if the profit margin is 8%?
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Quizplus · Accepted Answer

Return on assets (ROA) is calculated as (Net Income / Total Assets). With a profit margin of 8%, the net income is 8% of $700,000, which is $56,000. Therefore, ROA = $56,000 / $605,000 = 9.26%.

The Corner Market Had Annual Sales of $700,000 and Total