Flitter reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities. By the end of the year, assets had increased to $300,000 and liabilities were $75,000. Calculate its return on assets:
A. 5.8%.
B. 8.8%.
C. 23.3%.
D. 35.0%.
E. 7.0%.
Answer: E
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