Cloverton Corporation had net income of $30,000,net sales of $1,000,000,and average total assets of $500,000.Its return on total assets is:
A)3%
B)200%
C)6%
D)17%
E)1.5%

Question

Quizplus · Accepted Answer

Return on total assets can be calculated using the formula: net income/average total assets. Plugging in the given values, we get: 30,000/500,000 = 0.06 or 6%. Therefore, the correct answer is choice C.

Cloverton Corporation Had Net Income of $30,000,net Sales of $1,000,000,and