Get It Company wants to determine how well it is using its assets to generate profits. It knows that its net income for the year was $20,000. It also had $16,000 of cash, $70,000 of inventory, land and buildings valued at $250,000, $50,000 of accounts receivable, and goodwill valued at $20,000. What is Get It Company's return on assets?
A) 5.46%
B) 4.69%
C) 5.18%
D) 4.49%
E) 4.92%

Question

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The Answer of Get It Company wants to determine how well it is using its assets to generate profits. It knows that its net income for the year was $20,000. It also had $16,000 of cash, $70,000 of inventory, land and buildings valued at $250,000, $50,000 of accounts receivable, and goodwill valued at $20,000. What is Get It Company's return on assets?
A) 5.46%
B) 4.69%
C) 5.18%
D) 4.49%
E) 4.92%

Get It Company Wants to Determine How Well It Is