The following information is available for the Bumbling Company: $\begin{array} { l }
\text { Sales}& \$250,000\
\text {Invested capital }&156,250 \
\text { ROI}& 10\%\
\end{array}$
The net income is:
A) $93,750
B) $50,000
C) $156,250
D) $15,625

Question

The following information is available for the Bumbling Company: $\begin{array} { l  }
 \text { Sales}& \$250,000\
 \text {Invested capital }&156,250 \
 \text { ROI}& 10\%\
\end{array}$
 The net income is:
A) $93,750
B) $50,000
C) $156,250
D) $15,625

Quizplus · Accepted Answer

ROI (Return on Investment) is calculated as Net Income / Invested Capital. Given ROI is 10%, and Invested Capital is $156,250, Net Income = 10% of $156,250 = $15,625.

The Following Information Is Available for the Bumbling Company Sales$250,000Invested capital 156,250 ROI10%\begin{array} { l } \text { Sales}& \$250,000\\ \text {Invested capital }&156,250 \\ \text { ROI}& 10\%\\\end{array} SalesInvested capital ROI​$250,000156,25010%​

The Following Information Is Available for the Bumbling Company $\begin{array} { l } \text { Sales}& \$250,000\\ \text {Invested capital }&156,250 \\ \text { ROI}& 10\%\\\end{array}$