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    Return on Total Assets - Hagerman Corporation

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    Hagerman Corporation reports the following items of the year 2011:

    Sales (all on account) $200,000
    Cost of Goods Sold 120,000
    Sales and Administrative Expense 40,000
    Interest Expense 10,000

    Hagerman's income tax rate is 30%. The beginning balance of total assets was $140,000 and the ending balance was $90,000. The return on total assets was what number? Why?

    See the attached file.

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    Return on Total Assets (ROTA) = EBIT/Total Net Assets

    Hagerman Corporation's EBIT is ...

    Solution Summary

    The solution computes return on total assets for Hagerman Corporation.