Marino Company has provided the following information: Net sales,$480,000
Net income,$24,000
Average total assets,$200,000
-
What is Marino's return on assets?
A)240%
B)12%
C)5%
D)42%

Question

Quizplus · Accepted Answer

Return on assets (ROA) is calculated by dividing net income by average total assets.

ROA = Net Income / Average Total Assets

ROA = $24,000 / $200,000

ROA = 0.12 or 12%

Therefore, the correct answer is B.

Marino Company Has Provided the Following Information: Net Sales,$480,000