Based on the following information for Montana Investments, Inc., compute the rate of return on total assets. (Round the percentage to two decimal places.) Total Assets, December 31, 2019 $ 195 comma 000 Total Assets, December 31, 2018 $ 151 comma 000 For Year Ended December 31, 2019: Interest Expense $ 7 comma 000 Net Income $ 28 comma 000

Return on Total asset is 16.18%.

Explanation:

Total Assets, December 31, 2019 $195,000

Total Assets, December 31, 2018 $151,000 For Year Ended December 31, 2019

Interest Expense $7,000

Net Income $28,000

Return on Total Asset = Net Income / Average total Assets

Return on Total Asset = $28,000 / $173,000

Return on Total Asset = 0.1618 = 16.18%

Average total Assets = (Beginning Assets balance + Ending total Assets balance) / 2

Average total Assets = (151,000 + 195,000) / 2 = $173,000