Condor Company
Condor Company provided the following information for last year: $\begin{array}{ll}
\text { Operating income } & \$ 60,000 \
\text { Sales } & \$ 240,000 \
\text { Beginning operating assets } & \$ 440,000 \
\text { Ending operating assets } & \$ 450,000
\end{array}$
-Refer to Confor Company. What was the company's return on investment?
A) 0.10
B) 0.13
C) 0.32
D) 0.50

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Operating Income divided by Average Operating Assets. Average Operating Assets = (Beginning Operating Assets + Ending Operating Assets) / 2 = (\$440,000 + \$450,000) / 2 = \$445,000. ROI = \$60,000 / \$445,000 = 0.1348, which is approximately 0.13.

Condor Company Condor Company Provided the Following Information for Last

Condor Company
Condor Company Provided the Following Information for Last