Question

Gateway lodging has annual sales of $1.22 million, total debt of $380,000, total equity of $750,000, and a profit margin of 7.45 percent. what is the return on assets? 6.97 percent 7.13 percent 7.56 percent

Answer 1

.0745 * 1,220,000 $380,000+750,000=$90,890 $1,130,000 = .8043 = 8.04%

Your answer 8.04%