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?

Question

Quizplus · Accepted Answer

Return on total assets (ROTA) is calculated by dividing net income by total assets. ROTA = Net Income / Total Assets. In this case, ROTA = $50,000 / $175,000 = 0.286 or 28.6%. Therefore, the best choice is B, which represents the calculated value of ROTA.

What Would Be the Return on Total Assets of a Firm