Assume MetAmbit Inc

question 113

Multiple Choice

Assume MetAmbit Inc. had net income of $2,500 for the year ending December, 2014. Its beginning and ending total assets were $35,500 and $20,500, respectively. Calculate MetAmbit's return on assets (ROA) . (Round your percentage answer to two decimal places.)

• A)12.57%
• B)5.85%
• C)8.93%
• D)9.50%

---

Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset whereby the original cost is reduced equally across each year of its estimated useful life.

Salvage Value

The predicted disposal value of an asset at the conclusion of its usable life.

Net Cash Flows

The amount of cash that is generated or lost over a specific period, considering all cash inflows and outflows from operations, financing, and investing activities.