Assume MetAmbit Corporation had a 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.)

Question

Quizplus · Accepted Answer

ROA = Net Income / Average Total Assets 
Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 
Average Total Assets = ($35,500 + $20,500) / 2 = $28,000

ROA = $2,500 / $28,000 
ROA = 0.0893 or 8.93%

Therefore, the correct answer is C) 8.93%.

Assume MetAmbit Corporation Had a Net Income of $2,500 for the Year