Question

Assume Worldwide Cleaning Service had net income of $ 900 for the year. Worldwide Cleaning​ Service's beginning and ending total assets were $ 4 comma 600 and $ 4 comma 400​, respectively. Calculate Worldwide Cleaning​ Service's return on assets for the year

Answer 1

return on assets = 20%

Step-by-step explanation:

given data

net income = $900

beginning total assets = $4600

ending total assets = $4400

solution

we get here return on assets that is express as

return on assets =
`(net\ income)/(average\ assets)` × 100 ............1

here average assets will be

average assets =
`(4600+4400)/(2)`

average assets = $4500

put here value we get

return on assets =
`(900)/(4500)` × 100

return on assets = 20%