Please provide this question solution general accounting Based on the following data:Net income$240,000Preferred dividends $60,000Interest expenseInterest income$120,000$40,000Average total assets $1,000,000What is the rate earned on total assets?A. 36%B. 28%C. 18%D. 30%

Step 1: Define Return on AssetReturn on asset compares the value of business assets with the total…

Answered: Based on the following data: Net income…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 20E

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Based on the following data: Net income $240,000 Preferred dividends $60,000 Interest expense Interest income $120,000 $40,000 Average total assets $1,000,000 What is the rate earned on total assets? A. 36% B. 28% C. 18% D. 30%