Tom...accounting question Tom's Tool Factory is an investment center and is responsible for all of its netincome and the use of its assets. This year, the invested assets totaled $475,000,and net income was $275,000. What is the rate of return on assets?a. 57.9%b. 172.3%c. 5.0%d. 115.0%

Step 1: Define Return on assetA profitability ratio utilized by an organization for the purpose of…

Answered: Tom's Tool Factory is an investment…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, the invested assets totaled $475,000, and net income was $275,000. What is the rate of return on assets? a. 57.9% b. 172.3% c. 5.0% d. 115.0%