The following information is provided for Sandhill Co. and Monty Corp.. (in $ mi
ID: 2488577 • Letter: T
Question
The following information is provided for Sandhill Co. and Monty Corp..
(in $ millions)
Sandhill Co.
Monty Corp.
Net income 2017
$135
$370
Net sales 2017
1295
4620
Total assets 12/31/15
1005
2390
Total assets 12/31/16
1065
3090
Total assets 12/31/17
1150
4100
What is Monty's return on assets (rounded) for 2017?
10.3%
12.0%
12.6%
9.0%
(in $ millions)
Sandhill Co.
Monty Corp.
Net income 2017
$135
$370
Net sales 2017
1295
4620
Total assets 12/31/15
1005
2390
Total assets 12/31/16
1065
3090
Total assets 12/31/17
1150
4100
Explanation / Answer
return on assets = net income / average total assets
return on assets = 370 / (3090+4100) = 10.3% is the answer
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