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Clairmont Industries reported Net income of $283,000 and average Total assets of $637,000. The Return on total assets is:

A.55.6%.
B.88.8%.
C.61.5%.
D.44.4%.
E.125.1%

Respuesta :

Answer:

Option D

Explanation:

Given information:

Net income = $283,000

Average Total assets = $637,000

The formula for Return on total assets is

[tex]\text{Return on total assets}=\dfrac{\text{Net income}}{\text{Average Total assets}}\times 100[/tex]

[tex]\text{Return on total assets}=\dfrac{283,000}{637,000}\times 100[/tex]

[tex]\text{Return on total assets}=44.427[/tex]

[tex]\text{Return on total assets}\approx 44.4[/tex]

The Return on total assets is 44.4%. Therefore, the correct option is D.

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