Anguiano Incorporated reported the following results from last year's operations: The company's average operating assets were $5,000,000. Last year's return on investment (ROI) was closest to:
A) 7.0%
B) 14.7%
C) 45.8%
D) 47.6%

Question

Anguiano Incorporated reported the following results from last year's operations:  The company's average operating assets were $5,000,000. Last year's return on investment (ROI) was closest to:
A) 7.0% 
B) 14.7% 
C) 45.8% 
D) 47.6%

Quizplus · Accepted Answer

Return on Investment (ROI) = (Net Income / Average Operating Assets) x 100%
ROI = ($900,000 / $5,000,000) x 100% = 18%
Therefore, the closest answer is B (14.7%)

Anguiano Incorporated Reported the Following Results from Last Year's Operations