Assume a company provided the following information:

Net income	$	70,000
Interest expense	$	6,000
Tax rate		30	%
Average total assets	$	440,000

The return on assets is closest to:

Multiple Choice

• 15.1%.

• 13.4%.

• 16.9%.

• 14.4%.

• Which of the following statements is true with respect to vertical analysis?

  Multiple Choice

• It focuses on the relations among income statement accounts, but not balance sheet accounts.

• It focuses on the relations among financial statement accounts over time.

• It focuses on the relations among balance sheet accounts, but not income statement accounts.

• It focuses on the relations among financial statement accounts at a given point in time.