A company had average total assets of $982,450 and net income of $190,700, and reports various segment information. Segment A had average total assets of $437,800 and segment operating income of $98,230. Segment B had average assets of $151,200 and segment operating income of $16,190. Calculate the segment return on assets for Segment A
A) 19.4%.
B) 22.4%.
C) 26.1%.
D) 10.7%.

Question

Quizplus · Accepted Answer

Segment return on assets for Segment A is calculated as (Segment Operating Income / Segment Average Total Assets) * 100 = ($98,230 / $437,800) * 100 = 22.4%.

A Company Had Average Total Assets of $982,450 and Net