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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.