Assume MetAmbit Inc. had net income of $2,500 for the year ending December, 2014. Its beginning and ending total assets were $35,500 and $20,500, respectively. Calculate MetAmbit's return on assets (ROA). (Round your percentage answer to two decimal places.)

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Quizplus · Accepted Answer

ROA is calculated as Net Income divided by Average Total Assets. Average Total Assets = (Beginning Assets + Ending Assets) / 2 = ($35,500 + $20,500) / 2 = $28,000. ROA = $2,500 / $28,000 = 0.0893 or 8.93%.