Neon Light Company has $1,000,000 in assets and $600,000 of debt. It reports a net income of $100,000. What is the return on the assets?

10%

Explanation:

Given that,

Assets = $1,000,000

Dept = $600,000

Net income = $100,000

Therefore,

Return on assets = (Net income : Total assets) * 100

= ($100,000 : $1,000,000) * 100

= 0.10 * 100

= 10%

Hence, the return on assets of Neon Light Company is 10%.