Ridgetop Corporation reported the following amounts on its balance sheet at December 31, 2016: 
On January 1, 2016, total assets were $2,000,000, total liabilities were $1,200,000 and total stockholders' equity was $800,000.
Requirement:
Calculate Ridgetop's return on assets.
Definitions:
Collateral
An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.
Allowance Method
An accounting technique used to estimate and account for bad debts or uncollectible accounts receivable.
Bad Debts
Accounts receivable that a company considers uncollectible and writes off as a loss in its financial statements.
Sales
The transactions involving the exchange of goods or services for money.
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