https://www.mathl. ciples of Managerial Accounting Web Summer 20 est: Exam 2 Tim

Question

https://www.mathl. ciples of Managerial Accounting Web Summer 20 est: Exam 2 Time Remaining: 00 58.55 Submit Test is Question: 1 pt 5 of 32 (17 complete) ? This Test: 32 pts The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the curent ear End of current year End of prior year Net sales revenue (all credit) Cost of goods sold Gross profit Selling/general expenses Interest expense Net Income 1,520,000 1,025,000 $495,000 5284.200 $42,000 168.800 Current assets Long -term assets Total assets $116,000 $509.000 $82,000 $440.000 $522000 A. 22.06% OB. 22.79% ?C, 36.76% OD, 67.43% ost for e

Explanation / Answer

Net income = $168,800

Interest expense = $42,000

Average Total assets = ($625,000+$522,000)/2 = $573,500

Rate of return on total assets = (Net income+Interest expense) / Average total assets

Rate of return on total assets = $210,800/ $573,500 = 0.36757 = 36.76%

Hence, correct answer is C.36.76%

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