Question

A company reports the following income statement and balance sheet information for the current year: Net...

A company reports the following income statement and balance sheet information for the current year:

Net income $172,960
Interest expense      15,036
Average total assets 2,186,000

Determine the return on total assets. Round the percentage to one decimal place.
%

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Answer #1

Return on total assets = 8.6%

Working

Working Return on Total Assets
A Net income $            172,960.00
B Interest expense $              15,036.00
C = A+B Net Income before interest (or EBIT) $            187,996.00
D Total Asset balance (Working #1) $        2,186,000.00
E = C/D Return on Total Assets 8.6%
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