7. value 3.70 points Jester Corporation\'s most recent income statement appears

Question

7. value 3.70 points Jester Corporation's most recent income statement appears below $300,000 170,000 30,000 50,000 80,000 20,000 60,000 18,000 $ 42,000 Sales (all on account Cost of goods sold Gross mar Selling and administrative expenses Net opera interest expense Net Income before taxes incom Income taxes (30%) Net income The beginning balance of total assets was $240,000 and the ending balance was $236,700. The return on total assets is closest to: (Round your answer to 1 decimal place) 336% o 23.5% o 25.2% O 176% 0-3

Explanation / Answer

return on total assets = adjusted net income / average total assets

adjusted net income = 42000 + ( 20000 * ( 1 - 30) ) = 56000

average total assets = (240000 + 236700) / 2 = 238350 = 23.5%

so answer is 23.5%

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