Question

Fall Corp's total assets at the end of last year were $460,000 and its net income was $32,750. What was its return on total assets

Answer 1

7.12%

Step-by-step explanation:

Fall corporation total assets at the end of last year was $460,000

The net income was $32,750

Therefore the total return on assets can be calculated as follows

= net income / Total assets

= 32,750/460,000

= 0.07119×100

= 7.12%

Hence the return on total assets is 7.12%