A company that reports segment information had average total assets of $1,522,450 and total net income of $590,700. Segment A had average total assets of $927,800 and segment operating income of $298,300. Segment B had average assets of $594,650 and segment operating income of $292,400. The segment return on assets for Segment B is:
A) 60.9%.
B) 50.5%.
C) 32.2%.
D) 38.8%.
E) 49.2%.

Question

Quizplus · Accepted Answer

The segment return on assets for Segment B is calculated by dividing the segment operating income by the average assets of the segment. For Segment B, this is $292,400 / $594,650 = 49.2%.

A Company That Reports Segment Information Had Average Total Assets