For the year ended December 31, 2021, Akito Co. has net sales of $ 1,000,000 and profit of $ 290,000. Total assets on January 1, 2021 were $ 1,750,000 and total assets at December 31, 2021 are $ 1,245,000. Akito's return on assets for 2021 is
A) 19.4%.
B) 23.3%.
C) 66.8%.
D) 80.3%.

Question

Quizplus · Accepted Answer

Return on assets = Net income / Average total assetsAverage total assets = (Beginning total assets + Ending total assets) / 2= ($1,750,000 + $1,245,000) / 2= $1,497,500Return on assets = $290,000 / $1,497,500= 19.4%

For the Year Ended December 31, 2021, Akito Co