Question

River Corp's total assets at the end of last year were $390,000 and its net income was $32,750. What was its return on total assets?a. 6.28%.b. 5.73%.c. 6.82%.d. 6.48%.e. 7.71%.

Answer 1

8.40%

Step-by-step explanation:

Total asset = $390,000

Net income = $32,750

Return on total asset = Net income / Total asset

Return on total asset = $32,750 / $390,000

Return on total asset = 0.083974358974359

Return on total asset = 8.40%