Profitability ratio: Juventus Corp has total assets of $4,744,288, total debt of $2,912,000, and net sales of $7,212,465. Their net profit margin for the year is 18 percent. What is Juventus's ROA?

Question

Quizplus · Accepted Answer

ROA = Net Income/Total Assets

Net Income = Net Sales x Net Profit Margin = $7,212,465 x 0.18 = $1,298,043.7

ROA = $1,298,043.7/$4,744,288 = 0.2736 or 27.36%

Therefore, the best choice is C.

Profitability Ratio: Juventus Corp Has Total Assets of $4,744,288, Total