Question

on december 31, harper inc., reported, on its year-end financial statements, the following (in millions): year 2 year 1 total assets $9,890 $9,973 total sales $5,996 $5,995 net income $692 $752 calculate return on assets (roa) for year 2. select one: a. 60.4% b. 7.1% c. none of the these are correct. d. 60.6% e. 7.0%

Answer 1

The Return on Assets (ROA) for Harper Inc. for year 2 is calculated by dividing the net income by total assets and multiplying the result by 100, which gives an ROA of approximately 7.0%.

Step-by-step explanation:

To calculate the Return on Assets (ROA) for Harper Inc. for year 2, we use the formula:

ROA = (Net Income / Total Assets) x 100

Plugging in the given numbers:

ROA = ($692 million / $9,890 million) x 100

ROA = (0.06998) x 100

ROA = 6.998%, which can be rounded to 7.0%.

Therefore, the correct answer is:

E. 7.0%.