Shown below are data taken from a recent annual report of, Topaz, Inc. (Dollar amounts in millions.)

Beginning End

of Year of Year

Balance sheet data:

Current assets....................................................... $ 725 $875

Total assets........................................................... $1,050 $1,200

Current liabilities.................................................. $275 $175

Total liabilities...................................................... $500 $600

Total stockholders equity.................................... $575 $725

Income statement data:

Net sales............................................................... $1,900

Gross profit.......................................................... $1100

Operating income................................................. $550

Net income........................................................... $350

.

Instructions Compute the following:

Question: Return on average total equity for the year ? (round to the nearest 1%)

Select one:

a.

46%

b.

58%

c.

50%

d.

54%