Problem based on return on assets


Shore Company reported income before extraordinary items of $25,000, total liabilities of $150,000, and total stockholders' equity of $100,000. The return on assets was

a. 10%.

b. 25%.

c. 16.67%.

d. Cannot be determined from the data given.

e. None of the above is correct.

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Accounting Basics: Problem based on return on assets
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