MEGAFRAMECOMPUTERCOMPANY BalanceSheet AsatDecember31, 20X5ASSETS

Cash	$40,000
Accounts receivable	60,000
Inventory	90,000
New plant and equipment	220,000
Total Assets	$410,000

LIABILITIES AND SHAREHOLDERS EQUITY
Accounts payable	$60,000
Accrued expenses	40,000
Long-term debt	130,000
Common stock	80,000
Retained earnings	100,000
Total Liabilities and Shareholders Equity	$410,000

MEGAFRAMECOMPUTERCOMPANY IncomeStatement FortheyearendedDecember31, 20X5

Sales (all on credit)	$700,000
Cost of goods sold	400,000
Gross profit	300,000
Selling and administrative expense	100,000
Operating profit	200,000
Interest expense	40,000
Net income before taxes	160,000
Taxes (50%)	80,000
Net income	80,000

Using the DuPont method, return on assets (investment) for Megaframe Computer is approximately:

a.

25%.

b.

20%.

c.

15%.

d.

29%.