Assume Metro Corporation had a net income of $ 2 comma 200 for the year ending December 31. Its beginning and ending total assets were $ 34 comma 500 and $ 19 comma 500​, respectively. Calculate​ Metro's return on assets​ (ROA). (Round your percentage answer to two decimal​ places.)

To calculate Metro Corporation's Return on Assets (ROA), use the following formula:

\[
\text{ROA} = \left( \frac{\text{Net Income}}{\text{Average Total Assets}} \right) \times 100
\]

### Step 1: Calculate Average Total Assets
\[
\text{Average Total Assets} = \frac{\text{Beginning Total Assets} + \text{Ending Total Assets}}{2}
\]
\[
\text{Average Total Assets} = \frac{34,500 + 19,500}{2} = \frac{54,000}{2} = 27,000
\]

### Step 2: Calculate ROA
\[
\text{ROA} = \left( \frac{2,200}{27,000} \right) \times 100 \approx 8.15\%
\]

So, Metro Corporation's ROA is **8.15%**.

Would you like more details or have any questions? Here are some related questions:

1. What does a high or low ROA indicate about a company's performance?
2. How does ROA differ from Return on Equity (ROE)?
3. What are some ways a company can improve its ROA?
4. Can ROA be used to compare companies across different industries?
5. How might significant changes in asset values affect ROA calculations?

**Tip:** ROA is a useful metric to compare how efficiently a company uses its assets to generate profit relative to other companies or over time.

Learn how to calculate Metro Corporation's Return on Assets (ROA) with a step-by-step solution. Understand the formula for ROA and compute the average total assets from the given beginning and ending total assets. Suitable for financial analysis and college-level students.

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