Based on the partial balance sheet of Marco Investments, find the rate of return on total assets.

Name: Based on the partial balance sheet of Marco Investments, find the rate of return on total assets.
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Question

Quizplus · Accepted Answer

Rate of return on total assets = Net income ÷ Total assets
From the partial balance sheet, we can find that:
Total assets = $550,000
Net income = $83,875
Therefore, rate of return on total assets = $83,875 ÷ $550,000 = 0.1525 or 15.25%
So, the correct answer is option (B).

Based on the Partial Balance Sheet of Marco Investments, Find