A company had average total assets of $982,450 and net income of $190,700,and reports various segment information.Segment A had average total assets of $437,800 and segment operating income of $98,230.Segment B had average assets of $151,200 and segment operating income of $16,190.Calculate the segment return on assets for Segment A.
A)19.4%.
B)22.4%.
C)26.1%.
D)10.7%.
E)20.2%.

Question

Quizplus · Accepted Answer

Segment Return on Assets = Operating Income/Average Assets
Segment Return on Assets = $98,230/$437,800 =22.4%

A Company Had Average Total Assets of $982,450 and Net