Question

The following amounts were taken from the financial statements of Vaughn Company: 2017 2016 Total assets $770000 $810000 Net sales 740000 650000 Gross profit 355000 320000 Net income 117710 116000 Weighted average number of common shares outstanding 99000 99000 Market price of common stock $36 $42 The return on assets for 2017 is

Answer 1

Return on assets for 2017

= Net income x 100

Total assets

= $117,710 x 100

$770,000

= 15.29%

Step-by-step explanation:

Return on assets is the ratio of net income to total assets multiplied by 100.