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A company that reports segment information had average total assets of $1,530,450 and total net income of $602,700. Segment A had average total assets of $931,800 and segment operating income of $304,300. Segment B had average assets of $598,650 and segment operating income of $298,400. The segment return on assets for Segment A is:

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Nyctalus

Answer: 0.32 times

Explanation: Return on assets can be defined as the ratio under which companies are evaluated on the basis of total amount of assets investment. It is a ratio that evaluates the profitability of a company, it shows the ability of a company to generate revenue from the assets invested in it.

It can be computed as following :-

[tex]=\:\frac{NET\:INCOME}{AVERAGE\:TOTAL\:ASSETS}[/tex]

[tex]=\:\frac{\$304,300}{\$931,800}[/tex]

      = 0.32 times

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