At January 1, 2019, Flamingo Company had total assets of $5,400,000 and at December 31, 2019, its total assets were $6,600,000. Flamingo's net sales for 2019 were $5,100,000 and its 2019 net income was $420,000.
Flamingo's return on assets for 2019 is:
A) 7.0%
B) 9.2%
C) 7.8%
D) 99.2%

Question

Quizplus · Accepted Answer

$420,000 / [($5,400,000 + $6,600,000) / 2] = 7.0%

At January 1, 2019, Flamingo Company Had Total Assets of $5,400,000