Cersei's Cutlery has net sales of $1,200,000, net income of $88,000, average current assets of $48,000, average fixed assets of $186,000, and average total assets of $234,000. Cersei's return on assets is: (Round your final answer to the nearest percentage.)
A)38%.
B)7%.
C)47%.
D)183%.

Question

Quizplus · Accepted Answer

Return on assets = Net income / Average total assets= $88,000 / $234,000= 0.376= 37.6%= 38% (rounded to the nearest percentage)

Cersei's Cutlery Has Net Sales of $1,200,000, Net Income of $88,000