Hagerman Corporation’s most recent income statement appears below:
| Sales (all on account) | $470,000 |
| Cost of goods sold | 282,000 |
| Gross margin | 188,000 |
| Selling and administrative expense | 94,000 |
| Net operating income | 94,000 |
| Interest expense | 23,500 |
| Net income before taxes | 70,500 |
| Income taxes (30%) | 21,150 |
| Net income | $49,350 |
The beginning balance of total assets was $260,000 and the ending balance was $162,000. The return on total assets is closest to:
| 44.55% | |
| 33.41% | |
| 31.18% |