Luther Corporation Consolidated Income Statement
Year ended December 31 (in $millions)
-Refer to the income statement above. Luther's return on assets (ROA)for the year ending December 31, 2005 is closest to ________.
A)17.43%
B)34.86%
C)13.94%
D)1.99%

Question

Luther Corporation Consolidated Income Statement
Year ended December 31 (in $millions)  
-Refer to the income statement above. Luther's return on assets (ROA)for the year ending December 31, 2005 is closest to ________.
A)17.43% 
B)34.86% 
C)13.94% 
D)1.99%

Quizplus · Accepted Answer

ROA = Net Income / Average Total Assets = $2,000,000 / $11,470,000 = 17.43%