Assume MetAmbit Company had a net income of 2,000 for the year ending December 2016. Its beginning and ending total assets were 34,000 and 18,000 respectively. Calculate MetAmbit's return on assets (ROA) (Round your percentage answer to two decimal places.)

To calculate the return on assets (ROA), we need to use the following formula:<br /><br />\[ \text{ROA} = \frac{\text{Net Income}}{\text{Average Total Assets}} \times 100 \]<br /><br />Given:<br />- Net Income = \$2,000<br />- Beginning Total Assets = \$34,000<br />- Ending Total Assets = \$18,000<br /><br />First, we need to find the average total assets:<br /><br />\[ \text{Average Total Assets} = \frac{\text{Beginning Total Assets} + \text{Ending Total Assets}}{2} \]<br /><br />\[ \text{Average Total Assets} = \frac{34,000 + 18,000}{2} \]<br /><br />\[ \text{Average Total Assets} = \frac{52,000}{2} \]<br /><br />\[ \text{Average Total Assets} = 26,000 \]<br /><br />Now, we can calculate the ROA:<br /><br />\[ \text{ROA} = \frac{2,000}{26,000} \times 100 \]<br /><br />\[ \text{ROA} = 0.076923 \times 100 \]<br /><br />\[ \text{ROA} = 7.69\% \]<br /><br />Therefore, MetAmbit's return on assets (ROA) is 7.69%.