The return on total assets for the year 1 for Kellman Company equals 6.97%.
This is a financial tool that show how well a firm investments generate value which shows the productivity level for such firm.
The formula for Return on total assets = Net income / Total asset.
Assuming we are asked to prepare the return on total assets for the year 1.
Return on total assets = Net Income / (Total current assets + Total investments + Total property, plant, and equipment)
Return on total assets = $108,820 / ($627,453 + $67,475 +$ 866,358)
Return on total assets = $108,820 / $1,561,286
Return on total assets = 0.0696989533
Return on total assets = 6.96989533%
Return on total assets = 6.97%
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