The following information is available for the Leno Company: $\begin{array}{ll}
\text { Sales } & \$ 1,000,000 \
\text { Invested capital } & 312,500 \
\text { ROI } & 10 \%
\end{array}$ The net income is:
A) $31,250
B) $312,500
C) $100,000
D) $687,500

Question

Quizplus · Accepted Answer

ROI (Return on Investment) is calculated as Net Income divided by Invested Capital. Given ROI is 10%, and Invested Capital is $312,500, the Net Income is $31,250 (0.10 * $312,500).

The Following Information Is Available for the Leno Company Sales $1,000,000 Invested capital 312,500 ROI 10%\begin{array}{ll}\text { Sales } & \$ 1,000,000 \\\text { Invested capital } & 312,500 \\\text { ROI } & 10 \%\end{array} Sales Invested capital ROI ​$1,000,000312,50010%​

The Following Information Is Available for the Leno Company $\begin{array}{ll}\text { Sales } & \$ 1,000,000 \\\text { Invested capital } & 312,500 \\\text { ROI } & 10 \%\end{array}$