What was the return on assets

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A fire has destroyed a large percentage of the financial records of the Carter Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 18 %. If sales were $4million, the debt ratio was 0.40, and total liabilities were $2million, what was the return on assets (ROA)?

a. 10.80%

b. 0.80%

c. 1.25%

d. 12.60%

e. Insufficient Information

Please show your work

Reference no: EM131524815

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