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zscalable concept
on Nov 19, 2024Verified
Braverman Corporation's net income last year was $75,000 and its interest expense was $10,000. Total assets at the beginning of the year were $650,000 and total assets at the end of the year were $610,000. The corporation's income tax rate was 30%. The corporation's return on total assets for the year was closest to:
A) 13.5%
B) 12.4%
C) 13.0%
D) 11.9%
Return on Total Assets
This metric evaluates a company's efficiency in using its assets to generate profit, calculated by dividing net income by total assets.
Interest Expense
The cost incurred by an entity for borrowed funds, typically reported on the income statement.
Income Tax Rate
The percentage at which an individual or corporation is taxed on their income.
- Compute and elucidate the return on total assets.
Verified Answer
KJ
Learning Objectives
- Compute and elucidate the return on total assets.
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