27th Edition
WARREN + 5 others
ISBN: 9781337272094




27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Return on total assets

A company reports the following income statement and balance sheet information for the current year:

Net income $ 410,000
Interest expense 90,000
Average total assets 5,000,000

Determine the return on total assets. Round percentage to one decimal place.

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Return on total assets

Given info: Net income, interest expense, and average total assets.


Return on assets determines the particular company’s overall earning power. It is determined by dividing sum of net income and interest expense and average total assets.


Rate of return&#

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe the transaction recorded.

College Accounting (Book Only): A Career Approach

Describe the four common programmed edit checks.

Pkg Acc Infor Systems MS VISIO CD

Refer to the box titled, The Balance Sheet of an Average American Household when answering parts a and b. a. Ba...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)