Bryant, Inc provides the following data
2017 2016
Cash $47,000 $25,000
Accounts Receivable, Net 100,000 62,000
Merchandise Inventory 75,000 50,000
Property, Plant, and Equipment, Net 182,000 120,000
Total Assets $404,000 $257,000
Additional information:
Net Credit Sales $530,000
Cost of Goods Sold 170,000
Interest Expense 20,000
Net Income 185,000
Calculate the rate of return on total assets for 2017. (Round your answer to two decimal places.)
A) 45.79%
B) 62.03%
C) 71.98%
D) 50.74%
B .B)
Net income $185,000
Interest expense
Average total assets 330,500
Return on total assets*
Return on total assets = (Net Income + Interest Expense) / Average total assets = {$185,000 + 20,000 ) / [($404,000 + $257,000 ) / 2] = 62.03%
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