Return on assets (ROA) equals . total assets divided by costs of goods sold net

net profit margin times asset turnover.

Explanation:

Return on assets is a financial ratio that shows to how efficient an entity's management is at using its assets to generate income.

A company's return on assets (ROA) is calculated as the ratio of net income in a given period to the average total assets for the period.  It is further determined as net profit margin times asset turnover.

Given that

Net profit margin = net income/sales

assets turnover = sales/ average total asset

Return on assets = Net profit margin * assets turnover

= net income/sales * sales/ average total asset

=  net income/average total asset

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

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