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A company has net sales of $12 million, a profit of $1.5 million, and a total asset turnover of 2.0 times. What is the return on assets (ROA)? a) 18% b) 25% c) 12% d) 30%

A company has net sales of $12 million, a profit of $1.5 million, and a total asset turnover of 2.0 times. What is the return on assets (ROA)? a) 18% b) 25% c) 12% d) 30%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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A company has net sales of $12 million, a profit of $1.5 million, and a total asset turnover of 2.0 times. What is the return on assets (ROA)? a) 18% b) 25% c) 12% d) 30%
Transcribed Image Text:A company has net sales of $12 million, a profit of $1.5 million, and a total asset turnover of 2.0 times. What is the return on assets (ROA)? a) 18% b) 25% c) 12% d) 30%
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