rush company had net income of $240 million and average total assets of $2,000 million. its return on assets…

rush company had net income of $240 million and average total assets of $2,000 million. its return on assets (roa) is: multiple choice 12% 120% 80% 8% 800%

rush company had net income of $240 million and average total assets of $2,000 million. its return on assets (roa) is: multiple choice 12% 120% 80% 8% 800%

Answer

Explanation:

Step1: Recall ROA formula

ROA = $\frac{\text{Net Income}}{\text{Average Total Assets}}\times100%$

Step2: Substitute values

Net Income = 240 million, Average Total Assets = 2000 million. ROA = $\frac{240}{2000}\times100%$

Step3: Calculate

$\frac{240}{2000}\times100%= 0.12\times100% = 12%$

Answer:

12% (corresponding to the first multiple - choice option)