Moon Shoe Factory is an investment center and is responsible for all of their net income and the use of their assets. In 2012, the invested assets totaled $475,000 and net income was $125,000. What is the rate of return on assets?
A) 26.3%
B) 25.0%
C) 4.0%
D) 380.0%

Question

Quizplus · Accepted Answer

The rate of return on assets is calculated by dividing net income by invested assets. In this case, the rate of return on assets is $125,000/$475,000 = 26.3%.

Moon Shoe Factory Is an Investment Center and Is Responsible