Assume MetAmbit Inc. had net income of $2,500 for the year ending December, 2014. Its beginning and ending total assets were $35,500 and $20,500, respectively. Calculate MetAmbit's return on assets (ROA). (Round your percentage answer to two decimal places.)
A)12.57%
B)5.85%
C)8.93%
D)9.50%

Question

Quizplus · Accepted Answer

Return on Assets (ROA) is calculated as Net Income divided by Average Total Assets. The average total assets = (Beginning Assets + Ending Assets) / 2 = ($35,500 + $20,500) / 2 = $28,000. ROA = ($2,500 / $28,000) * 100 = 8.93%.