A Company Reports the Following Income Statement and Balance Sheet

question 44

Essay

A company reports the following income statement and balance sheet information for the current year:
$\begin{array}{|l|r|}\hline \text { Net income } & \$ 180,000 \\\hline \text { Interest expense } & 20,000 \\\hline \text { Average total assets } & 2,000,000\\\hline\end{array}$
Determine the rate earned on total assets.Round your answer to one decimal place.

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Definitions:

Stay-at-home Dad

A father who chooses to be the primary caregiver of the children and the house while the partner works outside the home.

Two-income Parents

Households where both parents work to provide financial support, contrasting with traditional single-earner families.

Adult Role Models

Individuals who exhibit behaviors and qualities that are positive examples for others, especially younger people, to emulate.

Income Inequality

The uneven distribution of income within a population, leading to a gap between the wealthy and the poor.