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

Question 46

Multiple Choice

Flash 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) 8.8%
B) 7.0%
C) 5.8%
D) 35.0%
E) 23.3%

Correct Answer:

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