Melanie's Bead Shoppe has total assets of $45,000, accounts receivable of $2,000, accounts payable of $3,100, and inventory valued at $20,000. Last year, her net sales were $29,000, and her operating profit margin equaled $14,000. What is her return on assets?
A) 31.1 percent
B) 12.5 percent
C) 7.0 percent
D) 22.0 percent
E) 48.3 percent

Question

Quizplus · Accepted Answer

Return on assets equals operating profit margin of $14,000 divided by total assets of $45,000, which equals 31.1%.

Melanie's Bead Shoppe Has Total Assets of $45,000, Accounts Receivable