Last year a company had stockholder's equity of $160,000,net operating income of $16,000 and sales of $100,000.The turnover was 0.5.The return on investment (ROI)was:
A)10%
B)9%
C)8%
D)7%

Question

Quizplus · Accepted Answer

Margin = Net operating income F1F1F1S1F1F1F10 Sales = $16,000 F1F1F1S1F1F1F10 $100,000 = 16%
ROI = Margin F1F1F1S1F1F1F10 Turnover = 16% F1F1F1S1F1F1F10 0.5 = 8%

Last Year a Company Had Stockholder's Equity of $160,000,net Operating