What would be the return on total assets of a firm if net income is $50,000, total sales are $100,000, and total assets are $175,000?
A) 35%
B) 28.6%
C) 57.14%
D) 62.8%

Question

Quizplus · Accepted Answer

Return on total assets (ROA) is calculated by dividing net income by total assets. So, ROA = (Net Income / Total Assets) * 100%. Plugging in the numbers, ROA = ($50,000 / $175,000) * 100% = 28.6%. Therefore, the answer is B.

What Would Be the Return on Total Assets of a Firm