Use the following information for questions
During 2012, Richlieu Corporation reported:
-To one decimal, Richlieu's return on assets is
A)7.5%.
B)7.9%.
C)9.4%.
D)12.5%.

Question

Use the following information for questions 
During 2012, Richlieu Corporation reported: 
-To one decimal, Richlieu's return on assets is
A)7.5%. 
B)7.9%. 
C)9.4%. 
D)12.5%.

Quizplus · Accepted Answer

Return on assets (ROA) is calculated by dividing net income by total assets. Using the information provided, we can calculate Richlieu's ROA as follows: $630,000 (net income) / $6,700,000 (total assets) = 0.094, which when multiplied by 100 and rounded to one decimal gives a return on assets of 9.4%.

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