A company's return on total assets equals 30%.If net income and net sales are $900,000 and $8,900,000 respectively,what is the amount of total assets?
A)$2,670,000
B)$270,000
C)$29,666,667
D)$3,000,000
E)$2,940,000

Question

Quizplus · Accepted Answer

Return on total assets is calculated as Net Income / Total Assets. Given that the return is 30% and net income is $900,000, we can set up the equation: $900,000 / Total Assets = 0.30. Solving for Total Assets gives Total Assets = $900,000 / 0.30 = $3,000,000.

A Company's Return on Total Assets Equals 30