Flitter reported net income of $20,000 for the past year. At the beginning of the year the company had $205,000 in assets and $55,000 in liabilities. By the end of the year, assets had increased to $305,000 and liabilities were $80,000. Calculate its return on assets:

A. 35.3%.
B. 7.8%.
C. 6.6%.
D. 24.4%.
E. 9.8%.


Answer: B

Business

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