bryant, inc. provides the following data: 2017 2016cash $47,000 $25,000accounts receivable, net 100,000 62,000merchandise inventory 75,000 50,000property, plant, and equipment, net 182,000 120,000total assets $404,000 $257,000additional information: net credit sales $530,000cost of goods sold 170,000interest expense 20,000net income 185,000calculate the rate of return on total assets for 2017. (round your answer to two decimal places.)

The rate of return on total assets for 2017 is 62.03%

Explanation:

The return on total shows assets shows a relationship between the net income including interest expenses and the average total assets.

The computation of the rate of return on the total assets is shown below:

Rate of return on the total assets = {(Net income + Interest expense) ÷ average total assets)}  × 100

= ($185,000 + $20,000) ÷ {($404,000 + $257000) ÷ 2} × 100

= ($205,000 ÷ $330,500) × 100

= 62.03%

answerinsider trading

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough