Canberry Corporation had net income of $80,000, beginning total assets of $640,000 and ending total assets of $580,000. Its return on total assets is:

Name: Canberry Corporation had net income of $80,000, beginning total assets of $640,000 and ending total assets of $580,000. Its return on total assets is:
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Question

Quizplus · Accepted Answer

Return on total assets is calculated as net income divided by average total assets. Average total assets = ($640,000 + $580,000) / 2 = $610,000. Return on total assets = $80,000 / $610,000 = 13.1%.

Canberry Corporation Had Net Income of $80,000, Beginning Total Assets