Asked by Pannu Jassi on Jun 26, 2024
Verified
Compute the company's return on total assets for Year 2.
A) 9.6%.
B) 15.2%.
C) 2.6%.
D) 22.2%.
E) 14.5%.
Return on Total Assets
A profitability ratio that measures net income produced by total assets within a period.
Financial Information
Data that pertains to the financial status, performance, and changes in financial condition of an entity.
- Analyze and compute key performance indicators including profit margin and return on total assets.
Verified Answer
IL
Ismael LumibaoJun 27, 2024
Final Answer :
B
Explanation :
Return on total assets = Net Income/Total Assets
For Year 2:
Return on total assets = $76,000 / $500,000
Return on total assets = 0.152 or 15.2%
For Year 2:
Return on total assets = $76,000 / $500,000
Return on total assets = 0.152 or 15.2%
Learning Objectives
- Analyze and compute key performance indicators including profit margin and return on total assets.
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