A Company Reported Net Sales of $900,000, Net Income of $100,000

question 70

Essay

A company reported net sales of $900,000, net income of $100,000 and average total assets of $425,000. Calculate its return on total assets.

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Definitions:

Non-controlling Interest

Equity interest in a subsidiary not held by the parent company, representing a share of the subsidiary’s net assets and profits.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as elections for the board of directors; instrumental in controlling the company.

Open Market

A market with no barriers to free market activity, where any buyer or seller can trade freely.

Buying and Selling Activity

Transactions involving the purchase and sale of goods and services, analyzed to assess a company's operational performance.