Doherty Corporation had net income of $30,000,net sales of $1,000,000,and average total assets of $500,000.Its return on total assets is equal to:
A)3%
B)200%
C)6%
D)17%
E)1.5%

Name: Doherty Corporation had net income of $30,000,net sales of $1,000,000,and average total assets of $500,000.Its return on total assets is equal to: A)3% B)200% C)6% D)17% E)1.5%
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Question

Quizplus · Accepted Answer

Return on total assets is calculated as (Net Income / Average Total Assets) * 100. For Doherty Corporation, it is ($30,000 / $500,000) * 100 = 6%.

Doherty Corporation Had Net Income of $30,000,net Sales of $1,000,000,and