Martin Company reported net income of $15,200 on gross sales of $84,000. The company has average total assets of $119,200, of which $104,000 is property, plant and equipment. What is the company's return on investment? (Round your answer to 2 decimal places.)
A)12.75%
B)70.47%
C)14.62%
D)18.10%

Question

Quizplus · Accepted Answer

The return on investment is calculated by dividing net income by average total assets. In this case, the return on investment is $15,200 / $119,200 = 12.75%.

Martin Company Reported Net Income of $15,200 on Gross Sales