Degollado Corporation's most recent income statement appears below:
The beginning balance of total assets was $200,000 and the ending balance was $220,000.Required:Compute the return on total assets. Show your work!

Average total assets = ($200,000 + $220,000) ÷ 2 = $210,000Return on total assets = Adjusted net income* ÷ Average total assets= $35,000 ÷ $210,000 = 16.7%*Adjusted net income = Net income + [Interest expense × (1 − Tax rate)]= $28,000 + [$10,000 × (1 − 0.30)] = $35,000