Problem
Mr. Smith Corp is in the business of filing parts used in fixing automobiles. Mr. Smith Corp has gross profit of 180.000 (gross margin rate is equal to 30%). Total assets at the beginning of the year were 875.000, and 980.000 at the end of the year. In addition to sates revenue, Mr. Smith earned 20,000 in rent revenue, 35.000 in interest revenue, and paid 6,000 in interest expense. Operating expense for the year total 96.000. Assume Mr. Smith has a tax rate of 24.81% (round tax expense the thousand). What is Mr. Smith's Return on Assets?