Answer:rate of return on total assets=22.22%
Explanation: Return on total assets is a ratio that measures the earnings generated by a company before interest and taxes in ralation to its total net assets which can be calculated from amount of financial and operations income grom a company's financial year in comparison to the average of that company's total assets.
For Montana Investments, Inc. in December31, 2019, we have that
Net income= $26,000
Interest expense
= $11,000
Average total assets= $194,000+$139,000/2
Return on total assets
=
(Net Income + Interest Expense) / Average total assets =
{$26,000 + 11,000 ) / [($194,000 + $139,000 ) / 2] =
37,000/166500=0.2222
=22.22%
