Metro Services, Inc. reported the following information for the year 2019. Based on the following information, calculate the rate of return on total assets for Metro Services, Inc. (Round the percentage to two decimal places.) $$\begin{array} { | l | l | }
\hline \text { Total Assets, December 31,2019 } & \$ 599,000 \
\hline \text { Total Assets, December 31,2018 } & \$ 505,000 \
\hline \text { For Year Ended December 31, 2019: } & \
\hline \text { Interest Expense } & \$ 27,900 \
\hline \text { Net Income } & \$ 67,100 \
\hline
\end{array}$$

Question

Metro Services, Inc. reported the following information for the year 2019. Based on the following information, calculate the rate of return on total assets for Metro Services, Inc. (Round the percentage to two decimal places.) $$\begin{array} { | l | l | } 
\hline \text { Total Assets, December 31,2019 } & \$ 599,000 \
\hline \text { Total Assets, December 31,2018 } & \$ 505,000 \
\hline \text { For Year Ended December 31, 2019: } & \
\hline \text { Interest Expense } & \$ 27,900 \
\hline \text { Net Income } & \$ 67,100 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Rate of return on total assets is calculated by dividing net income by total assets. In this case, net income is $104,000 and total assets are $604,000. Therefore, rate of return on total assets = (104,000/604,000) x 100% = 17.21%. The correct option is C.

Metro Services, Inc A) 1120% B) 7

Metro Services, Inc A) 1120%
B) 7