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Degollado Corporation's most recent income statement appears below: Sales (all on account) $ 270,000 Cost of goods sold 135,000 Gross margin 135,000 Selling and administrative
Degollado Corporation's most recent income statement appears below:
Sales (all on account) | $ | 270,000 |
Cost of goods sold | 135,000 | |
Gross margin | 135,000 | |
Selling and administrative expenses | 65,000 | |
Net operating income | 70,000 | |
Interest expense | 14,000 | |
Net income before taxes | 56,000 | |
Income taxes (30%) | 16,800 | |
Net income | $ | 39,200 |
The beginning balance of total assets was $270,000 and the ending balance was $230,000. |
Required: |
Compute the return on total assets. (Round your answer to 1 decimal place |
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