Assume Metro Company had a net income of $2,100 for the year ending December 2018. Its beginning and ending total assets were $33,500 and $19,500, respectively. Calculate Metro's return on assets (ROA). (Round your percentage answer to two decimal places.)

7.92%

Explanation:

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

Return on assets = (Net income) : (average of total assets)

where,

Net income is $2,100

Average total assets = (Beginning total assets + ending total assets) : 2

= ($33,500 + $19,500) : 2

= $26,500

Now put these values to the above formula

So, the ratio would equal to

= $2,100 : $26,500

= 7.92%