A company reports the following income statement and balance sheet information for the current year. Net income $166,160 Interest expense 14,446 Average total assets 1,942,000 Determine the return on total assets. Round the percentage to one decimal place
A company reports the following income statement and balance sheet information for the current year. Net income $166,160 Interest expense 14,446 Average total assets 1,942,000 Determine the return on total assets. Round the percentage to one decimal place
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company reports the following income statement and balance sheet information for the current year.
Net income $166,160
Interest expense 14,446
Average total assets 1,942,000
Determine the return on total assets. Round the percentage to one decimal place
Expert Solution

Working:
Operating income = Net Income + Interest expense
= $166,160 + $14,446
= $180,606
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