Problem:
On the 2011 income statement, Red Door boutique reported net income of $123,000. The company reported beginning total assets of $2,056,000 and ending total assets of $2,182,000.
Required:
Question: What is red door's return on assets for 2011?
A) 5.6%
B) 5.8%
C) $2,182,000
D) Cannot determine from the data given
Note: Please show how you came up with the solution.