Given the following financial data: net income/sales = 6%; sales/total assets = 3.5; debt/total assets = 30%. The return on total assets is:
A) 15%
B) 21%
C) 30%
D) 36%

Name: Given the following financial data: net income/sales = 6%; sales/total assets = 3.5; debt/total assets = 30%. The return on total assets is: A) 15% B) 21% C) 30% D) 36%
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Question

Quizplus · Accepted Answer

Return on Total Assets = Net Income/Total Assets
= Net Income/Sales * Sales/Total Assets
= 6% * 3.5
= 21%

Given the Following Financial Data: Net Income/sales = 6%; Sales/total