Q6TI.
Question
Using the following information, calculate the return on assets. Net income for November, 2018 $ 5,000 Total assets, November 1, 2018 76,000 Total assets, November 30, 2018 80,250
Step-by-Step Solution
Verified Answer
The return on assets equals 6.40%.
1Explanation on return on assets
Return on assets measures the business's profitability by utilizing its total assets.
2Return on assets calculation
Return on asset is calculated as follows:
Thus, the return on assets is 6.40%.
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