Assume MetAmbit Corporation had a net income of $ 2,300 for the year ending December 2016. Its beginning and ending total assets were $ 34,500 and $ 18,500 , respectively. Calculate MetAmbit's return on assets (ROA). (Round your percentage answer to two decimal places.)

The return on asset is 8.67%

Explanation:

The formula to compute the return on assets is shown below:

Return on assets = Net income : average total assets

where,

Net income is $2,300

And, the average total assets is computed by

= (Opening balance of total assets + ending balance of total assets) : 2

= ($34,500 + $18,500) : 2

= $53,000 : 2

= $26,500

Now put the values to the above formula

So, the ratio would equal to

= $2,300 : $26,500

= 8.67%