Ahina Industries is a division of a major corporation. Data concerning the most recent year appears below:
-The division's return on investment (ROI) is closest to:
A) 21.1%
B) 2.5%
C) 26.7%
D) 7.0%

Question

Ahina Industries is a division of a major corporation. Data concerning the most recent year appears below: 
-The division's return on investment (ROI) is closest to:
A) 21.1% 
B) 2.5% 
C) 26.7% 
D) 7.0%

Quizplus · Accepted Answer

ROI = Net Income / Total Assets
Total assets = Fixed assets + Current assets
Total assets = 8650 + 4300 = 12950
Net income = 1800
ROI = 1800 / 12950 = 0.1391 = 13.91%
Therefore, the closest answer to the ROI is 26.7%, which is option C.

Ahina Industries Is a Division of a Major Corporation