Flitter Reported Net Income of $17,500 for the Past Year

Multiple Choice

Flitter reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities. By the end of the year, assets had increased to $300,000 and liabilities were $75,000. Calculate its return on assets:

A) 23.3%.
B) 35.0%.
C) 8.8%.
D) 7.0%.
E) 5.8%.