Flitter reported net income of $17,500 for the past year.At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities.By the end of the year,assets had increased to $300,000 and liabilities were $75,000.Calculate its return on assets:

A) 8.8%.
B) 7.0%.
C) 5.8%.
D) 35.0%.
E) 23.3%.

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets.

Net Income

The profit remaining after all expenses, taxes, and costs have been deducted from total revenue.

Assets

Resources owned or controlled by a business or individual that have expected future economic benefit.