East Bay Business Daily

What would net income and return on assets be for the year?

Database Systems is considering expansion into a new product line Assets to support expansion will cost $500,000. It is estimated that Database can generate $1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets (investment) be for the year?

Public Comments

1. Under the Obama administration the answer will be zero. Any revenue left after paying expenses will be collected as federal income tax to pay for worthless socialist programs.