K Grocers' 2016 financial statements show average shareholders' equity of $9,264 million, net income of $1,505 million, interest expense of $870 million, and average total assets of $ 46,982 million.
How much is K Grocers' return on assets for the year? Assume that the statutory tax rate is 35%.
A) 16.2%
B) 5.1%
C) 4.4%
D) There is not enough information to calculate the ratio

Question

Quizplus · Accepted Answer

ROA = EWI / Average total assets = $1,505 + [$870 x (1 - 0.035)] / $46,982 million = 4.4%

K Grocers' 2016 Financial Statements Show Average Shareholders' Equity of $9,264