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Ratios: Return on Assets (ROA)

14. Financial Statement Analysis / Ratios: Return on Assets (ROA) / Problem 3

Problem 3

Calculate the ROA for a company with a net income of \$50,000 and total assets at the beginning of the year of \$300,000 and at the end of the year of \$400,000.

A

12.5%

B

10%

C

16.67%

D

14.29%