Question 1184492
Here's how to calculate the rate of return on assets (ROA) given the information provided:

1. **Calculate the profit margin:**

Profit margin is calculated as Net Income / Net Sales. We're told that Net Sales are 20 times greater than Net Income.  This means:

Net Sales = 20 * Net Income

Therefore:

Profit Margin = Net Income / (20 * Net Income) = 1/20 = 0.05 or 5%

2. **Calculate the total asset turnover:**

We are given that sales turnover 3 times during the year. This is also called asset turnover.

Total Asset Turnover = Net Sales / Average Total Assets

We know that Total Asset Turnover is 3.

3. **Calculate the Return on Assets (ROA):**

ROA is calculated as Profit Margin * Total Asset Turnover.

ROA = Profit Margin * Total Asset Turnover
ROA = 0.05 * 3
ROA = 0.15 or 15%

Therefore, the rate of return on assets is 15%.