December 31, 2020, is $70,000. To calculate the average total assets, we need the total assets for both 2020 and 2019. The total assets for 2020 are $420,200, and for 2019, they are $520,500.

Average Total Assets = (Total Assets 2020 + Total Assets 2019) / 2 = ($420,200 + $520,500) / 2 = $470,350

Now, we can calculate the return on assets:

ROA = Net Income / Average Total Assets = $70,000 / $470,350 0.1487 or 14.87%

The return on assets for the company is approximately 14.87%. This means that for every dollar of assets, the company generated a profit of 14.87 cents.

Answer rating: 100% (QA)

Answer ROA Definition Its a financial metric that shows how efficiently a company uses it... View the full answer