Arrow's net income of $120 million and average total assets of $1,500 million results in a return on assets of 8%.

Name: Arrow's net income of $120 million and average total assets of $1,500 million results in a return on assets of 8%.
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Question

Quizplus · Accepted Answer

Return on assets (ROA) is calculated by dividing net income by average total assets, and multiplying by 100 to get a percentage. In this case, ROA is (120/1500) x 100 = 8%. Therefore, the statement is true.

Arrow's Net Income of $120 Million and Average Total Assets