Question 3

In its financial statements KRJ International reported net income of $40 million and an effective tax rate of 31%. Total assets were reported at the beginning of the year as $337 million and at the end of the year $367 million. The LIFO reserve was reported at the beginning of the year as $40 million and at the end of the year $32 million. Calculate the return on assets after including the adjustment for LIFO. Present your answer in percentage terms, rounded to one decimal place, e.g., 12.3%.