What is big w corporation return on assets

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The following data is from the last two financial statements of Big W Corporation, whose effective tax rate is 35%.

                                             2019                              2018

Balance Sheet:

Total Assets                   $32,000                     $26,500
Common Stock                 12,000                          6,000
Retained Earnings               4,800                          3,500

Income Statement:

Depreciation Expense 2,000
Interest Expense 3,000
Income Tax Exp 9,000
Net Income 2,000

Problem 1: What is Big W Corporation's return on assets?

A. 6.8%
B. 12.3%
C. 10.0%
D. 13.5%

Reference no: EM132840749

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