Norwood Company has a return on investment of 10%, operating income of $200,000, and a capital turnover of 4.0. How much were Norwood's total assets?
A) $2,000,000
B) $800,000
C) $8,000,000
D) $20,000

Question

Quizplus · Accepted Answer

Return on investment = Operating income / Total assets * Capital turnover10% = $200,000 / Total assets * 4.0Total assets = $200,000 / (10% * 4.0)Total assets = $200,000 / 0.4Total assets = $2,000,000

Norwood Company Has a Return on Investment of 10%, Operating