The Kingwood Company reported net income of $40,000 and average total assets of $440,000. Calculate the company's return on assets.

return on assets = 0.09 = 9%

Explanation:

Giving the following information:

The Kingwood Company reported a net income of $40,000 and the average total assets of $440,000.

To calculate the return on assets, we need to use the following formula:

return on assets = net income / average total assets

return on assets = 40,000 / 440,000 = 0.09