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 net profit 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 net profit of $14,000 divided by total assets of $45,000 equals 31.1%.

Melanie's Bead Shoppe Has Total Assets of $45,000,accounts Receivable of $2,000,accounts