Canberry Corporation had net income of $80,000, beginning total assets of $640,000 and ending total assets of $580,000. Its return on total assets is:
A) 13.1%
B) 12.5%
C) 13.8%
D) 800%
E) 725%
A) 13.1%
Explanation: Return on Total Assets = Net Income/Average Total Assets
Average total assets = ($640,000 + $580,000)/2 = $610,000
Return on total assets = $80,000/$610,000 = 13.1%
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