An appliance store has total assets of $2,800,000,accounts receivable of $900,000,accounts payable of $700,000,inventory valued at $1,500,000,and total liabilities of $2,500,000.In 1999,its net sales were $2,100,000,and its net profit equalled $42,000.Calculate the store's return on assets.
A) 1.5 percent
B) 2.8 percent
C) 7.5 percent
D) 71.4 percent
E) 75 percent

Question

Quizplus · Accepted Answer

Return on assets equals net profit ($42,000) divided by total assets ($2,800,000) converted to a percentage.

An Appliance Store Has Total Assets of $2,800,000,accounts Receivable of $900,000,accounts