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Neon Light Company has $1,000,000 in assets and $600,000 of debt. It reports a net income of $100,000.What is the return on the assets?

Respuesta :

Answer:

10%

Explanation:

Given that,

Assets = $1,000,000

Dept = $600,000

Net income = $100,000

Therefore,

Return on assets = (Net income ÷ Total assets) × 100

                             = ($100,000 ÷ $1,000,000) × 100

                             = 0.10 × 100

                             = 10%

Hence, the return on assets of Neon Light Company is 10%.

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