A company's return on total assets equals 28%.If total assets and net sales are $4,500,000 and $10,000,000 respectively,how much is net income?
A)$2,800,000
B)$4,060,000
C)$1,260,000
D)$14,500,000
E)$2,030,000

Question

Quizplus · Accepted Answer

Return on total assets is calculated as Net Income / Total Assets. Given the return on total assets is 28%, and total assets are $4,500,000, the net income is 0.28 * $4,500,000 = $1,260,000.

A Company's Return on Total Assets Equals 28