Canberry Corporation had net income of $80,000,beginning total assets of $640,000 and ending total assets of $580,000.Its return on total assets is:
A)13.1%
B)12.5%
C)13.8%
D)800%
E)725%

Name: Canberry Corporation had net income of $80,000,beginning total assets of $640,000 and ending total assets of $580,000.Its return on total assets is: A)13.1% B)12.5% C)13.8% D)800% E)725%
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Question

Quizplus · Accepted Answer

Return on total assets = Net income / Average total assets= 80,000 / ((640,000 + 580,000) / 2)= 80,000 / 610,000= 13.1%

Canberry Corporation Had Net Income of $80,000,beginning Total Assets of $640,000