Chapter 9, Problem 22Q

To determine

Return on assets: It is used to measure the overall earning ability of the company. Thus, it shows the relationship between the net income and the average total assets. The following is the formula to calculate the return on assets ratio:

$\text{Rate of retun on assets = }\frac{\text{Net income}}{\text{Average total assets}}\times 100$

To discuss: the potential effect of the product on return of assets.