From the information provided below,management of an entity calculate the return on assets (rounded to the nearest whole number)to be:
$\begin{array}{|l|r|}
\hline\text{ Net profit after-tax }& \$ 109000 \
\hline \text{Net profit before interest and tax }& 152000 \
\hline \text{Beginning balance of total assets} & 620000 \
\hline \text{Ending balance of total assets} & 840000 \
\hline
\end{array}$
A) 15%
B) 21%
C) 18%
D) 13%

Question

From the information provided below,management of an entity calculate the return on assets (rounded to the nearest whole number)to be:
$\begin{array}{|l|r|}
\hline\text{ Net profit after-tax }&  \$ 109000  \
\hline \text{Net profit before interest and tax }& 152000 \
\hline \text{Beginning balance of total assets} & 620000 \
\hline \text{Ending balance of total assets} & 840000 \
\hline
\end{array}$
A) 15%
B) 21%
C) 18%
D) 13%

Quizplus · Accepted Answer

Return on assets = (Net profit after-tax / Average total assets) * 100= (109000 / ((620000 + 840000) / 2)) * 100= (109000 / 730000) * 100= 0.15 * 100= 15%

From the Information Provided Below,management of an Entity Calculate the Return