From the following information for BlueInks Corporation,compute the rate on return of assets.

Question

Quizplus · Accepted Answer

To compute the rate of return on assets, we need to divide the net income (after taxes) by total assets. Looking at the given information, we see that BlueInks Corporation had a net income of $580,000 and total assets of $2,315,000.

Therefore, Rate of Return on Assets = Net Income/Total Assets
= $580,000/$2,315,000
= 0.2506 or 25.06%

Hence, option B is the best choice as it matches with the computation results.

From the Following Information for BlueInks Corporation,compute the Rate on Return