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What will be ROA :
a)2.7
b)0.18
c)0.27
d)2.7
e) None of the above
This question is not correct because total assets = total liabilities + total capital . But if we ignore that . The right answer is option C . So balance sheet equation is not true .
Return on assets = Net income / Total assets which is0.27
Return On Asset (ROA)= Net Income/Total Assets
since,
ROA= 154200/575000= 0.27
The correct answer is "c".
ROA = (net income) / (total assets)
ROA=$154,200/$575,000
ROA=0.27
Correct answer is c)0.27 ( $154,200/ $485,000)
