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Calculating annual total return on assets

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The total assets of Perez Company were $1,950,000 at the beginning of the year and $1,830,000 at the end of the year. The company reported a net income of $225,000 and an interest expense of $30,000 during the year. The company's income tax rate was 30%. What was the company's return on total assets for the year?

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Solution Summary

This solution explains how to calculate a company's annual return on total assets, given its figures for values of its assets at the beginning and end of the year, its net income, its interest expense, and income tax rate.

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Net Income of $225,000
Minus $30,000
Total ...

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