Daisy Corporation reported net income of $3,250,000. The average total liabilities were $10,500,000 and average total stockholders' equity was $9,750,000. Interest expense was $425,000 and the tax rate was 28%. What is the return on assets ratio?

Daisy Corporation reported net income of $3,250,000. The average total liabilities were $10,500,000 and average total stockholders' equity was $9,750,000. Interest expense was $425,000 and the tax rate was 28%. What is the return on assets ratio?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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Question

I need help with this general accounting question using the proper accounting approach

Daisy Corporation reported net income of
$3,250,000. The average total liabilities
were $10,500,000 and average total
stockholders' equity was $9,750,000.
Interest expense was $425,000 and the tax
rate was 28%. What is the return on assets
ratio?

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