The Birdhouse Manufacturing Company posted $687,400 total sales in 2012 and generated a profit margin of 4.8 percent. At the end of the year, Birdhouse's balance sheet reported total debt of $210,000 and total equity of $365,000. What is the return on assets?
5.74 percent
6.48 percent
7.02 percent
7.78 percent
9.79 percent