Floyd's income statement showed for the current year his company had an operating income of $45,000 and his balance sheet showed total assets of $300,000.His return on assets is _________ percent.

Question

Quizplus · Accepted Answer

Return on assets is calculated by dividing operating income by total assets and multiplying by 100. So, ROA = (Operating income/Total assets) x 100. Substituting the given values, we get ROA = (45,000/300,000) x 100 = 15%. Therefore, the correct answer is option B - 15%.

Floyd's Income Statement Showed for the Current Year His Company