Assume MetAmbit Company Had a Net Income of $2,200 for the Year

question 119

Multiple Choice

Assume MetAmbit Company had a net income of $2,200 for the year ending December 2016.Its beginning and ending total assets were $34,500 and $18,500,respectively.Calculate MetAmbit's return on assets (ROA) .(Round your percentage answer to two decimal places. )

• A)6.38%
• B)11.89%
• C)8.30%
• D)4.15%

---

Definitions:

Declining-Balance Depreciation

Declining-Balance Depreciation is an accelerated depreciation method that calculates higher depreciation expenses in the earlier years of an asset's life, decreasing over time.

Lease Liability

A financial obligation representing the present value of all future lease payments a lessee is committed to make under lease agreements.

Invests

The act of allocating resources, usually money or capital, in something to earn financial returns or gain profitable outcomes.

Lump Sum

An amount of money paid in a single payment, rather than in installments.