The total assets of the ABC Company on January 1, 19x9 were $2.3 million and on December 31, 19x9 were $2.5 million. Net income for 19x9 was $188,000. Dividends for 19x9 totaled $75,000, interest expenses totaled $70,000, and the tax rate was 30%. The return on total assets for 19x9 was closest to:
Please see the attached file.
Net Income 188,000
Beginning of Year 2,300,000
End of Year 2,500,000
Background info on ROA:
A ratio that measures a company's earnings before ...
The return on total assets are examined. Interest expense total assets are analyzed.